PayPal Reveals Intention to Create NFT Marketplace

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  • Paypal has indicated plans to create an NFT marketplace to handle either on or off-chain trades
  • The platform would handle creator fees through an external entity
  • The Ethereum blockchain will be used as the exchange’s foundation

Payments giant PayPal has filed a patent showing an intent to create an NFT marketplace that can handle collectibles trading on or off-chain. Although PayPal hasn’t expressly mentioned its preferred blockchain for the exchange there’s a mention of Ethereum, an indication that it may be powered by the blockchain. According to the filing, the payment processor plans to entrust third parties with creator fees. PayPal has been making strides in the blockchain world and recently launched its own stablecoin, an indication that decentralized technology can help expand its business beyond payments.

NFTs can be More Than Collectibles

According to the patent application, the payments heavyweight considers NFTs to be more than virtual collectibles and could be used to represent real-world items, a field in which fashion brands like Louis Vuitton and sportswear giant Nike have expressed an interest.

PayPal noted that digital collectibles could also be used in the legal sector, an opinion that was recently backed by a United States federal judge who allowed a plaintiff to deliver court papers via NFTs.

The payments giant’s NFT exchange could be tailored to fit a variety of scenarios including powering fractionalized purchases or engaging a DAO to provide liquidity on the platform. The marketplace will also offer an in-built wallet for users although it won’t block external wallets.

No Gas Fees for Off-chain Trades 

Paypal indicated that off-chain NFT trades won’t incur gas fees as is with “on-chain transactions, ” and that the platform is open to using a wide range of cryptocurrencies.

The revelations come a week after PayPal expanded its stablecoin to Venmo users and two years after its CEO said that cryptocurrencies will “redefine the financial world.

With PayPal’s continued blockchain exploration, it’s likely that it’ll deliver an NFT marketplace as described.