Facebook is looking to get in on the NFT

Facebook is considering adding NFT support to its crypto wallet.


Key Takeaways

  • David Marcus, the head of Facebook Financial, has told Bloomberg that the firm is "definitely looking" at adding support for NFTs.
  • Facebook plans on supporting NFTs within its Novi crypto wallet. The wallet will also be used for stablecoins.
  • The social networking giant is only the latest in a string of major companies to adopt or express interest in digital collectibles.

NFT Hype Reaches Facebook

Facebook, the world's most influential social media site, is considering including NFTs into its cryptocurrency wallet, Novi. Facebook executive David Marcus has stated the social media firm may add support for NFTs via its crypto wallet. 

“We're looking into a variety of methods to get involved in the [NFT] market because we believe we're in a great position to do so.”

Facebook intends to use NFTs within the Novi crypto wallet, according to Marcus. Novi was created by Facebook to facilitate transactions for Diem, a stablecoin that was previously known as Libra.

“You have to think about how to help people support NFTs when you have a solid crypto wallet like Novi,” Marcus remarked.

Without giving specifics, the Facebook CEO also hinted that the Novi wallet will allow users to retain and transact NFTs. The wallet was created using a Facebook-developed permissioned blockchain network.

During what some are dubbing "NFT summer," demand for NFTs has skyrocketed. OpenSea, an NFT marketplace built on the Ethereum blockchain, is one of the greatest drivers of growth. The OpenSea platform has seen over $1.5 billion in trade volumes in the last month, despite the expanding NFT sector.

MetaMask and TrustWallet, two Ethereum-based Web3 wallets, also allow users to store and send NFTs, however they don't fully sync the assets.

In 2019, Facebook created a wallet just for Libra. It was envisioned as a dollar-pegged digital asset that could be traded over the Internet, similar to USDC and USDT. Libra was met with a lot of resistance from regulators all around the world, who were concerned about its potential exploitation by criminals.

Since the regulatory battle, the business has been gradually pushing out the stablecoin under the rebranded name Diem.

Although Facebook's interest in NFTs is welcomed by enthusiasts, the social networking platform is not the first significant tech business to adopt the technology.

Microsoft was the first among the largest American technology businesses, or FAANG stocks, to use NFTs. The IT behemoth behind Windows has teamed up with Enjin to reward its developer community with one-of-a-kind digital collectibles.

Microsoft's NFT exposure, on the other hand, has been limited to its development community. In recent months, a number of other big companies, including Shopify, Atari, Coca-Cola, Budweiser, and Twitter, have integrated, released, or purchased their own NFTs. As a growing number of multinational corporations seek to enter the market, it appears that the technology is here to stay.

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