PayPal Files Patents Related to NFTs
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Oct. 2, 2023

Payments giant PayPal has just filed four patent applications to launch solutions related to NFTs, L2 and metaverses.

According to the documents, token transactions are expected to be conducted on- and off-chain through an anonymous third-party service provider.

PayPal intends to leverage the full potential of NFTs for tokenization:

"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."

The system is configured in several ways. In particular, it allows for partial purchases through the distribution of governance tokens. Subsequently, it allows to start trading with the latter.

The documents also mention among the options the use of a "DAO linked to the service provider to enhance the liquidity of NFTs through a dedicated platform." The tokens may include the ability to generate royalty income.

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