Coinbase (NASDAQ:COIN) just can’t seem to stay out of the spotlight. Today, the cryptocurrency exchange announced a collaboration with payment processor and card-issuer Mastercard (NYSE:MA). As a result of the collaboration, users on Coinbase’s upcoming non-fungible token (NFT) marketplace will be able to buy NFTs using a Mastercard debit or credit card. Coinbase announced its plans for an NFT marketplace late last year.
The collaboration between the two companies is meant to attract non-crypto users to the NFT world. Using a Mastercard, customers will be able to buy NFTs with fiat dollars instead of cryptocurrencies, like Ethereum (CCC:ETH-USD). In contrast, the traditional NFT marketplace requires users to convert fiat money into a cryptocurrency to buy NFTs. On top of that, the user must connect their crypto wallet with the NFT marketplace provider. Mastercard and Coinbase are working together to simplify the NFT transaction process and make it easier for the user.
Mastercard’s Vice President of Digital Assets Raj Dhamodharan, is bullish on NFTs as well, adding that:
“Getting more people involved safely and securely is perhaps the best way to help the NFT market thrive. As it does, Mastercard sees even greater potential for NFTs’ underlying tech to go beyond art and collectibles into many more areas.”
With that said, investors are wondering about the implications that the collaboration could have on COIN stock. Let’s jump right in.
Coinbase Announces NFT Collaboration with Mastercard
- Coinbase is working with Mastercard to “classify NFTs as ‘digital goods.’” The classification seeks to attract users who may have been previously uncomfortable with purchasing NFTs.
- Mastercard will use recently acquired CipherTrace to help improve the safety of NFT purchases.
- In addition, Coinbase’s NFT marketplace, called Coinbase NFT, will allow users to buy, sell and mint NFTs. While the platform is still under development, a waiting list is currently accessible.
- Coinbase rivals Binance and FTX also launched NFT marketplaces last year.
- 2022 could be a pivotal year for NFTs. DappRadar reported that NFTs generated $11.9 billion of sales in Q4 of 2021. Furthermore, DappRadar reported that the first 1o days of 2022 are “looking strong” in terms of NFT sales.
- DappRadar analyst Pedro Herrera added that “Despite the volatile cryptocurrencies cycles, NFTs maintain a stagnant positive trend.”
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.