Royalty Vault models what an asset-backed loan against a music catalog looks like, side by side with the standard move: selling the whole thing to a fund for one check.
Why this, why now: Lunar Records Fund #1, formed in January 2026 through HWAL's Melody Trust subsidiary, became the first music catalog to inscribe royalty rights directly onto Ethereum. It's raising against a pool of songs, paying token holders a monthly pro rata cut of the royalties. That same rail, a royalty stream turned into a live, verifiable cash-flow asset, is what makes lending against a catalog possible instead of forcing a full sale. RealWorld's model keeps the artist as owner and keeps the checks coming. Lending against the value beats selling it away.
Your catalog
What the loan looks like
Sell outright vs. borrow against it
| Path | Upfront cash | Keep ownership | Monthly income after |
|---|---|---|---|
| Borrow against itRealWorld-style asset-backed loan | $0 | Yes | $0 |
| Sell the catalogTypical fund buyout, one lump sum | $0 | No | $0 |
| Unsecured loanRare for royalty income, if available at all | Usually declined | Yes | n/a |