PayPal, the digital payments giant, says it is ready to enter the Non-Fungible Token market, filing a new patent application for buying and trading NFTs.
PayPal: patent for buying and trading NFTs and its blockchain ecosystem
PayPal has published a new patent application for buying and trading NFTs as the basis for the creation of its blockchain ecosystem.
In practice, the digital payments giant says it is ready to enter the NFT market, however, by creating a system where users can buy and sell NFT through a third-party service provider.
Such a system will be able to handle not only NFTs, but also splits, DAOs and royalties, through a third-party provider.
Not only that, while the text repeatedly refers to the Ethereum blockchain, there is a part where NFT trading outside the blockchain is also considered.
PayPal and NFT trading even off-chain
In the description of its patent application, PayPal envisions that NFT trading can be customized and done off-chain as well.
In this regard, here is what it says:
“Off-chain transactions could be handled within an “omnibus wallet” associated with the service provider and containing both the buyer and seller’s wallets:
Therefore, no transfer is registered on the blockchain and there is no need to broadcast the transaction to the blockchain network or pay the gas fees associated with such an on-chain transaction.”
This means that PayPal users who want to do NFT buying and trading do not have to have their own digital wallet. One solution of his would be a third-party broker that could provide a range of storage and checkout services.
Not only that, in its NFT patent application, the payments giant specifies what can be tokenized as follows:
“The NFT in this example may represent any unique piece of digital data that can be tracked using a decentralized blockchain ledger. […] Examples of such assets include […] digital images and videos, music, collectibles, and other digital art along with deeds to personal property, event tickets, legal documents and other real-world items.”
PYUSD stablecoin expansion
As PayPal is set to enter the NFT market last August, the digital payments giant launched its stablecoin PayPaul USD (PYUSD), in partnership with Paxos.
PYUSD is an ERC-20 token on the Ethereum network and is fully collateralized in USD USD.
Since then, PYUSD has been welcomed into the crypto market. And indeed, back in early September, Coinbase announced the integration of PayPal’s stablecoin on its platform.
Then a few days ago, Bitget’s crypto-exchange also announced the listing of PYUSD.
But as it turns out, it is Crypto.com that is taking PayPal by storm, forging a new strategic partnership with the payments giant and Paxos to emerge as the leading trading platform for PYUSD stablecoin.
In this regard, Crypto.com announced that it currently holds the largest global liquidity for PYUSD trading pairs, making it available to both its retail and institutional users.