Asset Tokenization Strategy? Winklevoss Brothers' Exchange Launches NFT Dollar Trading Market

The cryptocurrency exchange Nifty Gateway, owned by the Winklevoss brothers, founders of the American Gemini exchange, announced the completion of its Nifty Gateway 2.0 update on March 17th. Moving forward, users will be able to trade non-fungible tokens (NFTs) on the platform using US dollars. At the same time, after an update on the Bakkt website, an option to trade "In-game assets" has also appeared. Why are these institutions suddenly so interested in the NFT market?

Nifty Gateway 2.0 Launched

Nifty Gateway exchange was acquired by the cryptocurrency company Gemini, founded by the Winklevoss twins, in November 2019. It is an exchange that focuses on trading non-fungible tokens (NFTs). According to a press release published by the exchange on March 17th, the platform introduced two new features after completing its Nifty Gateway 2.0 update.

The first feature is the official launch of a USD trading market for NFTs, making it the first exchange globally to trade NFTs in USD. Tommy Kimmelman, Nifty Gateway's Head of Business Development, stated:

"On Nifty Gateway, you can trade NFTs in USD, and after selling an NFT, you can directly cash out to your bank account, providing users with a trading experience similar to StockX or eBay."

However, Kimmelman emphasized that USD withdrawals are currently only available to U.S. users, while international users will have to wait for some time to access USD withdrawals. Apart from USD withdrawals, international users can freely use other features. Additionally, although platform users can list and sell NFTs on the Nifty market, the platform stated that it will still review the NFTs listed on the platform to ensure the security of transactions:

"You can deposit NFTs of any item and list them for sale in the market. However, we will still review the listed NFTs to control the quantity of goods in the market and prevent any potential fraud."

Collaboration with Celebrities to Release Tokenized Collectibles

Another feature announced by Nifty Gateway is its collaboration with celebrities to create and release exclusive tokenized collectibles in the coming months. The company plans to release a new NFT every three weeks. The first collection announced will be a digital collection created in collaboration with female MMA fighter Cris Cyborg and renowned photographer Lyle Owerko.

Lyle Owerko expressed:

"Being an early adopter is interesting... it's like the painters in the 1880s seeing a camera for the first time."

The Vanguard of Asset Tokenization

Recently, after Bakkt announced raising $300 million in financing, its official website underwent a redesign. It displayed options for trading in-game assets.

In essence, whether collectibles or tokenized game assets, they are fundamentally NFTs. It can be speculated that these exchanges might not be interested in the market for collectibles or game assets but rather in the market for tokenized assets.

In the future of asset tokenization, a trading platform will be essential for the trading of tokenized physical assets. The so-called "market for collectibles or game assets trading" may just be a pilot project for these institutions to develop a robust NFT trading market early on, thereby securing a place in the future of asset tokenization.

Related Reading

• Breaking News: Bakkt Secures $300 Million in Financing, New Slogan "Bakkt Converts All Your Digital Assets to Cash"
• Institutional Perspective: Oracle, NFTs, and Incremental Market Projects Set for Major Growth in 2020

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