Lombard and Story Collaboration
Lombard is set to collaborate with Story by utilizing Bitcoin’s robust liquidity to establish a collateral framework for the on-chain management of intellectual property (IP). This partnership aims to offer a revolutionary form of crypto-economic insurance aimed at creators and rights holders, as detailed in a press release from crypto.news dated October 16.
Addressing Creator Pain Points
The integration of Lombard’s Bitcoin infrastructure directly within the Story protocol focuses on addressing significant pain points identified by creators, including the delayed distribution of royalties and insufficient enforcement of licensing agreements. Lombard’s new approach proposes not only the use of Bitcoin as a payment method but also positions it as a critical collateral asset, which will provide a financial safeguard that can automatically uphold IP rights on the blockchain.
Innovative Blockchain Technology
Story’s layer-1 blockchain technology is designed to convert intellectual property into programmable assets on-chain. This innovative model allows for the tokenization of copyrights, character designs, and music compositions, embedding licensing terms directly into these digital assets. This capability mitigates the need for ongoing negotiations with lawyers or agents, resulting in a more efficient process for automatic licensing and remixing of these assets.
Industry Interest and Advancements
The protocol has already garnered interest from high-profile players in the industry, including prominent Korean IP companies such as Solo Leveling, a popular webtoon, and Barunson Studio, recognized for producing the Oscar-winning film Parasite. For Story, this alliance with Lombard signifies a pivotal advancement from merely a rights management platform to a comprehensive financial apparatus.
Notable Innovations
The integration brings forth two notable innovations:
- Bitcoin Revenue Distribution: This aims to resolve the pervasive issue of lengthy royalty payment timelines. Creators associated with Story will now have the opportunity to receive immediate, borderless payments in Bitcoin, minimizing losses to intermediaries.
- Crypto-Economic IP Security: This leverages Bitcoin as collateral to ensure the enforcement of licensing agreements. In cases where licensees default on payments, smart contracts have the ability to liquidate the Bitcoin collateral, providing a swift resolution to financial disputes that would traditionally require protracted legal proceedings.
CEO Insights
SY Lee, CEO and co-founder of Story, expressed enthusiasm about the benefits of this integration, stating, “By incorporating Lombard’s Bitcoin infrastructure, Story empowers creators and developers to license, settle, and secure the value of IP instantaneously on a global scale. Bitcoin’s reliability positions it as the leading digital asset to facilitate this value exchange.”
Strategic Market Positioning
The partnership strategically positions itself within South Korea, a major hub for cultural exports, which generated $13.6 billion last year in IP revenue. Given Story’s established relationships with key Korean studios and Lombard’s significant influence in the area, this collaboration is poised to capitalize on a burgeoning market eager for cutting-edge solutions.
Lombard’s Growing Influence
Lombard’s BARD token is gaining traction as one of the top BitcoinFi assets traded on major South Korean exchanges such as Upbit and Bithumb. Furthermore, its recent partnership with institutional custodian KODA offers a compliant pathway for integrating traditional finance solutions.
Accomplishments and Future Prospects
In terms of accomplishments, Lombard has successfully introduced over $3 billion in previously untapped Bitcoin onto its platform, reaching a staggering $1 billion in total value locked within just 92 days. Its LBTC token is widely integrated across multiple chains and over 75 decentralized finance (DeFi) protocols, with an impressive 80% of its total supply actively utilized.
