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Spotify Expands AI Music Platform Through Merlin Partnership

Spotify is expanding its upcoming AI-powered music remix and covers platform through a new partnership with Merlin, bringing more than 30,000 independent labels and distributors into the initiative.

The agreement follows Spotify’s earlier collaboration with Universal Music Group and broadens the catalogue of artists who can choose to participate in the platform.

AI With Artist Permission

Unlike AI services that generate entirely synthetic songs, Spotify says its new product is designed around licensed music and artist consent.

The platform will allow fans to create AI-generated covers and remixes using music from participating artists, while ensuring creators are credited and compensated for the use of their work.

A New Revenue Opportunity

Spotify plans to launch the feature as a paid add-on, creating an additional source of income for artists who choose to make their catalogues available.

An initial research preview will be rolled out to a limited group of users, although the company has not announced a launch date.

A Different Approach To AI Music

The announcement comes as AI-generated music continues to grow rapidly across streaming platforms. Rather than competing with services that create entirely new songs, Spotify is positioning its product as a licensed ecosystem that allows fans to interact with existing music while keeping artists involved in the creative and commercial process.

Cyprus Loan Growth Accelerates To 14% In September

Lending in Cyprus accelerated in September, with the annual growth rate of total loans reaching 14%, up from 11.8% in August. Deposits also recorded a stronger monthly increase, according to the Central Bank of Cyprus (CBC).

Total deposits rose by a net €697.1 million to €60.2 billion at the end of September. Total loans increased by €857.8 million to €29.6 billion, according to the CBC’s October 2026 Monetary and Financial Statistics.

Deposit Growth Strengthens

Deposits recorded a monthly increase of €697.1 million, more than four times the €171.5 million rise in August. However, the annual growth rate remained unchanged at 6.5%.

Deposits held by Cyprus residents increased by €639.9 million. Household deposits rose by €93.8 million, while deposits held by non-financial corporations grew by €373 million. Other domestic sectors contributed a further €173.1 million.

Annual Loan Growth Reaches 14%

Total loans increased by a net €857.8 million in September, compared with €114.6 million in August. The annual growth rate accelerated to 14%, up from 11.8% a month earlier.

Lending to Cyprus residents rose by €470.8 million. Loans to households increased by €52.2 million, while lending to non-financial corporations grew by €110.1 million. Other domestic sectors recorded a larger increase of €308.5 million.

The figures cover deposits and loans held by monetary financial institutions in September 2026.

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