PayPal Reinforces Web3 Ambitions with NFT Marketplace Patent

PayPal has been taking significant strides to establish its own blockchain ecosystem. First, the international payment system launched its very own stablecoin, PYUSD. Now, it’s filed a patent to facilitate NFT purchases and transfers through an intriguing royalty-friendly marketplace. 

The patent, filed six months ago, in March, yet only published last week, on September 21, states the PayPal NFT marketplace will feature a unique method for executing NFT transactions both on and off-chain with the use of any currency. 

PayPal’s NFT Marketplace Ambitions

Setting PayPal’s NFT marketplace apart from other exchanges is a system that enables users to partake in NFT transactions via 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, tracked using a decentralized blockchain ledger, entailing digital images, music, videos, art, collectibles, event tickets, legal documents, and even physical rewards, among others. 

Rumors also have it that a DAO associated with the service provider will be employed to boost NFT liquidity through the platform. On top of that, the NFTs will garner ongoing income for rights holders and creators through in-built royalty provisions in smart contracts. By utilizing both DAOs and royalties, the ecosystem ensures both equity and sustainability within the platform. 

On top of that, to eliminate transmitting transactions on the blockchain network chosen and paying gas fees associated with the payments, users are not required to use their blockchain wallets (but can do so if they prefer). Alternatively, off-chain transactions can be overseen through the ‘omnibus wallet’. 

Although an exact release date for the PayPal NFT marketplace is yet to be announced, it’s apparent that the finance titan is on a quest to create a more sustainable and inclusive NFT ecosystem whereby investors, creators and users can freely thrive on and off-chain.