Amazon plans to issue NFTs (Non-Fungible Tokens) that correspond to real-world assets, unlike typical NFT platforms that are limited to the virtual world. This expands the ownership experience of digital assets to include tangible assets. The goal is to enhance the user experience. In regular NFT marketplaces, transactions are conducted using cryptocurrencies, requiring users to have knowledge of blockchain or self-custody wallets. However, according to reports, the “Amazon Digital Marketplace” aims to simplify the NFT purchasing process and provide a seamless experience for users. It allows users to purchase NFTs using credit cards, with transactions completed through an Amazon platform account. The NFTs can be stored in the user’s Amazon account.
Amazon has a massive user base of up to 197 million users, encompassing diverse demographics. If these users join the NFT market, it would inject fresh blood into the market. Unlike conventional, single-market platforms, the diversity of users would lead to increased market activity. Additionally, by lowering the barrier to entry, more non-crypto users can participate, making user expansion easier.
Amazon’s plans for the marketplace were initially hinted at a few years ago. In 2021, CNBC reported that Amazon confirmed the recruitment of a cryptocurrency executive. A company spokesperson stated in a statement, “We are inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon. We believe the future will be built on new technologies that enable advanced, fast, and low-cost payment experiences, and we want to bring that to Amazon customers as soon as possible.”