SoundCloud has acquired Nina Protocol, a decentralized music marketplace that shut down in May after failing to find a sustainable business model. The deal, announced Wednesday, brings the defunct platform's editorial archive and genre map under SoundCloud's control, though financial terms remain undisclosed. Main Developments Under the acquisition, SoundCloud gains ownership of Nina's editorial archive, genre map, and music journalism collection. The company plans to use these assets to surface emerging artists and scenes for its listeners, according to a blog post. Artists who previously sold music through Nina will receive a migration tool to transfer their work to SoundCloud. They will also get a complimentary SoundCloud Artist subscription through the end of the year, which includes monetization features and audience growth tools. Read also: Yope Raises $12.3M for Ad-Free, Algorithm-Free Social Networking It remains unclear whether any Nina team members will join SoundCloud. The company has not responded to requests for comment on the matter. Background Nina Protocol was founded in 2021 by independent musicians Jack Callahan, Mike Pollard, and Eric Farber. The platform allowed artists to operate their own digital storefronts, keeping 100% of their revenue without relying on traditional streaming services. Built on the Solana blockchain for fast, low-cost transactions, Nina used Arweave for permanent decentralized storage of music files and metadata. Despite its innovative approach, the platform announced it would shut down on May 28 after failing to establish a sustainable business model. This marks SoundCloud's first acquisition since its 2022 purchase of AI music company Musiio, which was aimed at improving music discovery. The deal signals the company's ongoing expansion beyond music hosting into a broader platform for independent artists. Why It Matters The acquisition highlights the challenges decentralized music platforms face in achieving financial sustainability. Nina's shutdown just months before the deal underscores the difficulty of building a viable business around direct-to-fan sales on blockchain technology. For SoundCloud, the deal provides a trove of curated editorial content and genre mapping that could strengthen its position as a discovery platform for independent artists. CEO Eliah Seton emphasized the company's priority to "honor what they've created, while carrying that mission forward." What's Next SoundCloud will integrate Nina's editorial archive and genre map into its platform, aiming to help independent artists build deeper fan relationships and unlock new revenue streams. The migration tool for former Nina artists is expected to roll out in the coming months. Questions remain about whether SoundCloud will revive any of Nina's decentralized features, such as blockchain-based direct sales. The company has not announced plans to incorporate those elements into its existing infrastructure.