Sales of tokens can be settled back into USDC within the Circle system. Ideally, they simply enter card details and then have money in their account at the NFT platform.Ĭircle allows its business users to accomplish this via native payment processing settlement into USDC.
This can be done by enabling customers to easily deposit funds into their account, which they can use to purchase NFTs without going through a series of hops in the process. NFT marketplaces need to build a payments infrastructure that provides their customers with a seamless, intuitive experience. As a result, some of the most popular NFT platforms use dollar digital currency to facilitate trading.įor instance, the popular NFT creators, Dapper Labs, use Circle Accounts to enable its customers to buy and sell NFTs using USDC.Ĭircle: A Crypto-Native Solution for NFT Marketplaces The stability that has powered the rapid growth of digital dollar stablecoins has proved attractive in the NFT sector. While that volatility has made such digital currencies attractive to speculators and investors, it is less attractive to consumers looking to use digital currency to fund purchases of goods or services. The growing popularity of stablecoins in recent years stems from the ability of these coins to provide an alternative to the volatility associated with traditional cryptocurrencies. USDC is a price-stable and transparent dollar digital currency that is fully backed by reserved assets held at regulated financial institutions. These price-stable digital currencies offer a convenient funding source for NFT customers. By smoothing these on- and off-ramps between tokens and traditional payment systems, a solution of this type provides a seamless payments infrastructure that facilitates customer acquisition and loyalty.ĭollar Digital Currency: The Base Currency of the NFT Marketĭollar-backed stablecoins such as USD Coin (USDC) have quickly become the preferred currency of NFT marketplaces and storefronts. As a result, NFT marketplaces can better serve their customers by offering them crypto-native payment options that simplify the process of purchasing their products.Ī crypto-native payment solution enables customers to transfer their funds to tokens and back out again at their choice. While the most dedicated purchasers may be willing to go through all these steps to buy NFTs, more casual customers may not be willing to do so.
If a customer can’t purchase NFTs with their credit or debit card, it can dissuade them from participating in this new market.Įven in those cases where a payment processor will allow cryptocurrency purchases, the customer first has to purchase cryptocurrency, wait for that purchase to settle, then convert that crypto somehow to an NFT marketplace where they can finally buy NFTs. As a result, providers of these tokens must look at other options to avoid inconveniencing their customers. Most traditional payment processors won’t directly facilitate NFT transactions.
However elegant the design of their application may be, if it’s difficult for customers to add funds to or take funds out of their accounts, sales are likely to suffer. NFT marketplace and storefront providers face the challenge of efficiently building on- and off-ramps for their applications.
Learn more about NFTs in Episode 35 of The Money Movement:īuilding a Payments Infrastructure for NFTs For example, NBA Top Shot enables you to own highlight footage of NBA players in the form of a non-fungible token. That is now also possible in digital form via NFTs representing collectible sport memorabilia. Sports Collectibles: Many fans with a passion for sports also collects items related to their favorite teams.Virtual Assets: NFTs are also used to represent asset ownership in virtual worlds, also known as the Metaverse, where you can own virtual land or other types of property.The ability to create in-game items with verified ownership in the form of NFTs has been a driving factor. Gaming Collectibles: Blockchain gaming is a booming industry as more and more game developers recognize the benefits that DLT can bring to online gaming.Trading Cards: While some of us once traded in physical baseball cards, the next generation now does that online in the form of digitized collectible cards that “live” on the blockchain.Crypto Art: With provenance recorded on the blockchain, a new type of digital art has emerged in the form of tradable, non-fungible tokens.Let’s have a look at the main categories of crypto collectible items.
The NFT economy is a vast ecosystem of different types of non-fungible tokens, ranging from the obscure and entertaining to sophisticated digitized versions of real-world assets.