PayPal announces its NFT market entry with a patent filing, showcasing its digital asset acquisition and trading strategy.
The powerhouse of digital payments, PayPal, has filed a new patent application for the purchase and trading of non-fungible tokens (NFT), indicating that it is prepared to enter the market.
PayPal: patent for its blockchain environment and for purchasing and selling NFTs
On the basis of purchasing and trading NFTs, PayPal has released a new patent application that will serve as the foundation for its blockchain ecosystem.
In actuality, though, the market leader in digital payments claims it is prepared to join the NFT space by setting up a framework that will allow customers to purchase and sell NFT via a third-party service provider.
Through a third-party provider, the system will be able to manage splits, DAOs, royalties, and NFTs.
Furthermore, even though the Ethereum blockchain is mentioned frequently in the book, NFT trading off the blockchain is also discussed in one section.
Even off-chain trading with PayPal and NFT
PayPal describes their concept for off-chain and customized NFT trading in the description of their patent application.
This is what it states in this regard:
“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 implies that having a digital wallet of their own is not a requirement for PayPal customers who wish to engage in NFT purchasing and selling. He suggested using a third-party broker that could offer a variety of checkout and storage options as a solution.
Additionally, the payments behemoth details what can be tokenized in the following ways in its NFT patent application:
“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.”
YUSD stablecoin growth
In collaboration with Paxos, the digital payments behemoth PayPaul USD (PYUSD) was introduced as a stablecoin last August in anticipation of its entry into the NFT market.
On the Ethereum network, PYUSD is an ERC-20 token that has complete USD USD collateralization.
PYUSD has since been accepted by the cryptocurrency market. Indeed, Coinbase had declared in early September that it will be incorporating PayPal’s stablecoin into its platform.
The crypto-exchange Bitget then revealed the listing of PYUSD a few days ago.
However, it turns out that Crypto.com is the one stealing the show from PayPal, forming a new strategic alliance with the behemoth in payments along with Paxos to become the top trading platform for PYUSD stablecoin.
With respect to this, Crypto.com declared that it offers its institutional and retail users access to the most global liquidity for PYUSD trading pairs at the moment.
