Amazon NFTs Will Be Tied to Real-world Assets, Token Possible

Amazon marketplace will tie digital ownership to physical goods delivered to customers’ doors

article-image

Sundry Photography/Shutterstock.com modified by Blockworks

share

Amazon is laying the groundwork to give its customers the ability to purchase NFTs tied to real-world assets that are delivered to their doorstep, according to three sources familiar with the matter.

The move is a significant upgrade from the e-commerce giant’s earlier steps in developing its NFT platform, a move previously reported by Blockworks. And the company is planning to notify every Amazon Prime customer — at least in the US — of its digital collectibles initiative once it goes live, an additional two sources said. 

Amazon shoppers, for instance, would be able to purchase a fashion-oriented NFT tied to a pair of jeans — and pay with a credit card, sources said, just as they would with any other Amazon purchase. 

The timing of the massive enterprise’s launch still appears to be in flux, although The Big Whale today reported a date of April 24. An Amazon spokesperson declined to comment. Two sources said a launch would come by this May at the latest. 

One mechanism Amazon is considering for spreading the word about its digital collectibles push is sending out an email blast to every US-based Prime subscriber, one source said. An additional two sources said the company is planning to notify its Prime customers in some capacity — either before or when the product goes live.

“They can onboard millions of users without educating people about self-custody, without educating people how to [set up] a MetaMask wallet,” one source said, likening Amazon’s move to Starbucks loyalty program with Polygon. Amazon currently has approximately 167 million Prime members in the USA.

The back end blockchain technology isn’t clear, and the company appears to have considered a number of different options for integration since it began working on the ambitious initiative. 

Representatives for Amazon working on the project have contacted layer-1 blockchains, blockchain gaming companies and other types of both emerging and established digital asset projects. The company has either hired or is looking to hire or partner with dozens of Web3 oriented developers. 

Amazon’s intention is to create some type of private blockchain, multiple sources said — adding that it’s not clear whether that could come about via a fork of an existing protocol. Several sources said it’s also not definitive, to their knowledge as of publication, whether an Amazon token would be part of the deal, with one of them dubbing the setup as a “very walled garden.” 


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit