According to PayPal, its system could use any currency. The company has already added numerous blockchain-related features to its platform, including the MetaMask Wallet, PayPal USD, and Ethereum.
Online payments giant PayPal Holdings Inc (NASDAQ: PYPL) has applied for a non-fungible token (NFT) marketplace to purchase and transfer NFTs, both on- and off-chain. Filed back in March and published last week, the application describes a means of carrying out transactions with NFTs. It is still pending approval at the United States Patent Office.
According to PayPal, its own NFT marketplace would allow the company to reveal the full potential of NFTs for tokenization.
PayPal explained how the system will work:
“A request to perform a transaction involving a purchase, via the NFT marketplace, of an NFT associated with a specified source address is received from a first user of the service provider associated with a first identifier and a first digital wallet. Responsive to determining that the specified source address corresponds to a second user of the service provider associated with a second identifier and a second digital wallet, an identifier associated with the NFT is updated from the second identifier associated with the second user to the first identifier associated with the first user.”
The document published by PayPal describes multiple ways of customizing its system. Ecamples include accommodating fractionalized purchases through the distribution of governance tokens, which could then be traded themselves, as well as promoting NFT liquidity through a dedicated platform by a decentralized autonomous organization associated with the service provider.
“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.”
According to PayPal, its system could use any currency. The company has already added numerous blockchain-related features to its platform, including the MetaMask Wallet, PayPal USD, and Ethereum (ETH).
PayPal Expanding Its Crypto Product Line
Along with planning on the development of the NFT marketplace, PayPal is expanding its range of crypto products.
In August, PayPal introduced its native stablecoin PayPal USD (PYUSD). Fully backed by USD and supported with reserve funds, the stablecoin is issued by Paxos Trust. It aims to address concerns about issuing unbacked tokens. The coin is currently accessible for purchase on several major exchanges, including Crypto.com, Coinbase, and Kraken. Last week, PayPal announced that its stablecoin would be available to users on Venmo.
Further, PayPal partnered with crypto security firm Ledger to provide on-ramp payment solutions to users and allow customers to purchase cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) directly through the Ledger Live app using their verified PayPal accounts.
On September 12, PayPal also launched an off-ramp service to let users easily sell the crypto for USD.