PayPal has taken significant steps to establish its own blockchain ecosystem. First, the international payment system launched its own stablecoin, PYUSD. Now it has filed a patent to facilitate NFT purchases and transfers through an intriguing royalty-friendly marketplace.
The patent, which was filed six months ago in March and only published last week on September 21, states that the PayPal NFT marketplace will provide a unique method for conducting NFT transactions both inside and outside the chain, using any currency.
PayPal’s NFT Marketplace Ambitions
PayPal’s NFT marketplace differentiates itself from other exchanges with a system that allows users to participate in NFT transactions through a third-party service provider and fully unlock the potential of virtual assets for tokenization through governance tokens. Additionally, the assets will represent a wide variety of digital data, maintained using a decentralized blockchain ledger, including digital images, music, videos, art, collectibles, event tickets, legal documents, and even physical rewards, among others.
There are also rumors that a DAO associated with the service provider will be deployed to increase NFT liquidity through the platform. Additionally, the NFTs will generate ongoing revenue for rights holders and creators through built-in royalty provisions in smart contracts. By using both DAOs and royalties, the ecosystem ensures both equity and sustainability within the platform.
Additionally, to eliminate sending transactions on the chosen blockchain network and paying gas fees for the payments, users are not required to use their blockchain wallet (but can do so if they prefer). Alternatively, off-chain transactions can be monitored via the ‘omnibus wallet’.
While an exact release date for the PayPal NFT marketplace has yet to be announced, it’s clear that the financial titan is looking to create a more sustainable and inclusive NFT ecosystem where investors, creators, and users can freely thrive both on and off-chain.