Amazon plans to launch NFTs

Amazon is advancing its efforts to establish a presence in the cryptocurrency market. Blockworks, a source of cryptocurrency news, reported that the company would introduce a non-fungible token (NFT) initiative some time in the spring of 2023.

Four sources with knowledge of the situation were consulted by Blockworks for this information. They claimed that Amazon has been approaching various participants in the cryptocurrency ecosystem, such as layer-1 blockchains, blockchain-based gaming startups, developers, and digital asset exchanges, with a pitch for its new platform for digital collectibles.

The offering’s primary focus is on blockchain-based gaming and related NFT applications, including one that was created specifically to entice Amazon customers to play cryptocurrency games and earn free NFTs in the process.

Amazon already provides access to a videogame platform to customers of its Prime service. Members of this service have access to the platform’s library and are given rewards each month that can be used to buy AAA games. By providing new incentives and drawing in new customers, the new NFT initiative could strengthen the service.

According to Blockworks, the NFT platform is currently under development and may operate directly on Amazon rather than through Amazon Web Services (AWS). There is no official statement from Amazon or its executives, but the company may disclose more details in April 2023.

Amazon is not the first significant tech company to have cryptocurrency ambitions. It’s already possible for users of Meta, Twitter, and other platforms to interact with digital assets thanks to their crypto initiatives.

The business garnered interest in the cryptocurrency sector two weeks ago when it disclosed a partnership with Ava Labs, the organization in charge of the Avalanche blockchain. To grant access to this network to thousands of businesses, the cryptocurrency company teamed up with AWS.

Ava Labs, the development company behind the layer-1 blockchain platform Avalanche (AVAX), and AWS teamed up earlier in January with the aim of accelerating the adoption of blockchain by businesses, institutions, and governments.

"I expect that #NFTs will continue to grow very significantly. We're not probably close to adding #crpyto as a payment mechanism in our retail business. But I do believe over time you'll see crypto become and it's possible … it's possible down the road," says $AMZN CEO @ajassy. pic.twitter.com/6q6HVolzgU

— Squawk Box (@SquawkCNBC) April 14, 2022

Andy Jassy, the CEO of Amazon, joined CNBC’s Squawk Box in April 2022. Jassy predicted that the NFT market would expand further and that Amazon might accept cryptocurrency payments.