Cryptocurrency exchange Coinbase announced Tuesday (Oct. 12) that it will soon debut a marketplace for non-fungible tokens (NFTs) that will let users mint, collect and trade the coins, according to a CNBC report.
Users can sign up to a waitlist for early access to the feature, the company said in a blog post.
The NFT market exceeded $10 billion in transaction volume in the third quarter of 2021, according to the report, citing crypto-based data tracker DappRadar.
Coinbase’s NFT marketplace, called Coinbase NFT, will include what company leaders described as “social features” and will also tap into what’s known as the creator economy, people who make money posting videos and other content online.
The move into NFTs could help Coinbase find new revenue streams, since it relies on exchange fees these days, according to the CNBC report.
Related: Coinbase Spat With SEC Could Have Chilling Effect on Stablecoin Use Cases and Innovation
After the Securities and Exchange Commission (SEC) threatened lawsuits, Coinbase canceled its plans to launch a lending product tied to U.S. digital currency stablecoins.
Although the SEC’s concerns were not fully laid out in reports about the situation — even Coinbase wasn’t clear on the SEC’s concerns — much debate over cryptocurrencies, stablecoins in particular, has hinged on “investment contracts,” as defined in a Supreme Court case known as “Howey.”
The SEC has stated that securities laws can apply to digital assets.
Also read: NFT Fever Sends Q3 Sales Surging To $10.7B
Third-quarter NFT sales were $10.7 billion, up from $1.3 billion in the previous quarter and $1.2 billion in the first, according to DappRadar data.
NFTs, digital art or content, are linked to images or video and give holders singular ownership. Everyone from Visa to social media platforms TikTok are selling these unique collectibles, which feature athletes, musicians and artists, from household names to anonymous online handles.
Dolce and Gabbana recently set a record for fashion NFTs at $6 million.
DappRadar says the volume of NFT sales at $13.2B so far this year, while CryptoSlam data puts 2021 sales at $9.6 billion. NonFungible.com found $7 billion in sales so far this year, exclusively through Ethereum purchases.
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