Because its platform is frequently people’s first engagement with the crypto market, Coinbase has become synonymous with cryptocurrency. However, cryptocurrency trading is only the beginning of Coinbase’s long-term goals.
We already know that a non-fungible token (NFT) marketplace is on the way, and a new cooperation with Mastercard (NYSE: MA) reveals that the traditional banking industry is being bridged. Coinbase might be a wonderful growth company for investors if it can become a central element of our digital financial future.
Coinbase is the world’s largest cryptocurrency platform, with more than 73 million users and $255 billion in assets. And the company has gained this advantage by providing a user-friendly platform that makes the complicated world of cryptocurrency appear simple.
Coinbase’s goal is to become a next-generation financial hub, not just a site where people can buy and sell bitcoins. Users may now deposit wages directly into Coinbase, use a Coinbase Card to make conventional purchases, earn interest on crypto assets, and soon buy and sell NFTs on a Coinbase NFT marketplace.
All of these measures are aimed at bridging the gap between traditional finance and cryptocurrencies, which could play a significant role in future digital transactions. Coinbase is evolving into more of a bank or brokerage firm than merely a cryptocurrency exchange, and that focus is expanding with a new NFTs collaboration.
What’s significant about these actions is how simple it is to transfer money between traditional financial systems and cryptocurrencies. To purchase most NFTs today, you must first purchase cryptocurrency on an exchange such as Coinbase, transfer the money to a crypto wallet, and then purchase an NFT on an NFT marketplace. The procedure is difficult for people to understand.
Last week, we learned that Coinbase and Mastercard are teaming up to allow customers to buy NFTs with credit cards, once again integrating traditional banking with the realm of cryptocurrencies and Web 3.0, which is defined by cryptocurrency blockchains and personally transferable data.
Although no specifics have been disclosed, it’s likely that a credit card purchase would be used to buy a cryptocurrency (such as Ether) and then the NFT, all in one seamless transaction for users.
The Coinbase NFTs cooperation with Mastercard could be a precursor to what’s to come. Coinbase may dramatically ease the process of purchasing and owning NFTs by acting as a financial middleman, marketplace, and asset custodian, similar to how a broker acts as the custodian of stocks you possess. This would make purchasing NFTs easier and lower financial risk for holders.