Today’s been a relatively flat day in the crypto market. Over the past 24 hours, the entire crypto market is up only 0.1%, as of 4 p.m. ET, paring some of the day’s earlier gains. For cryptocurrency exchanges such as Coinbase Global (NASDAQ:COIN), this has led to a similarly flat day, with Coinbase stock closing down 1.1%, as of market close.
However, there’s a key catalyst Coinbase investors are keeping on their radar today. Yesterday, it was announced that Coinbase is teaming up with Mastercard (NYSE:MA) to provide payment services for the company’s non-fungible token (NFT) marketplace, which is currently under construction. The idea is that Mastercard credit or debit cards can be used to allow users to pay for NFTs in fiat currency, simplifying the purchasing process for less tech-savvy crypto aficionados.
The ability of crypto to go mainstream often requires centralized entities to come in and simplify the rather complex world of blockchain for the masses. In the case of Coinbase, this exchange has shown the ability to do just that. The growth this platform has seen from a range of sophisticated to less-sophisticated investors has been incredible to watch.
For those who are intrigued by NFTs, but have no idea where to get started, this partnership certainly looks like it makes a lot of sense. Coinbase’s goal is to open up crypto investing to the little guy. Accordingly, many are likely to view this partnership deal as one that could make NFTs much more mainstream than they already are.
It should be noted that Coinbase’s proposed NFT marketplace is still a work in progress. This deal, groundbreaking as it is, could still hit roadblocks. Additionally, existing NFT marketplaces holding the lion’s share of the NFT market are unlikely to just sit there and let Coinbase eat their lunch. Thus, whether this Mastercard-Coinbase partnership is the deal that’s needed to break the mold, or whether users will simply go on doing what they’ve been doing thus far, remains to be seen.
However, the ability for would-be NFT purchasers to buy non-fungible tokens using their credit card could be a game changer for this space. Coinbase has done a masterful job of integrating fiat currency with the crypto world. This deal looks to be the latest in the company’s string of innovative integrations other exchanges may follow.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.