5 Major Factors Why Fintech Industry Can Profit From NFTs – Times Of India
Over the past ten years, FinTech has had a huge impact on the worldwide financial services sector. India is acknowledged as a major FinTech hotspot globally, the promising India Fintech sector is anticipated to reach $1 Tn in throughout and $200 Bn in revenue by 2030. In 2021, the funding for fintech saw a 3X increase. An organic and cooperative environment has encouraged this expansion, which has also received backing from significant government programmes.
With the coming up of new technology and the rise of cryptocurrencies, NFTs also came to limelight with big creators and artists launching their own collections, to understand all this first we need to know what NFTs are. NFTs are tokens that represent rights to underlying digital content that is stored on a blockchain. While governments around the world are wary about cryptocurrencies, NFTs have been (relatively) warmly received, especially by the entertainment industry and creative artists. NFTs get an aspect of exclusivity since they are, by nature, non-identical and valued on their uniqueness. The ‘charm’ of having a one-of-a-kind connection to the underlying work of an artist, brand, or other entity has led to certain NFTs being viewed as collectibles, with high demand from experts. This is also true for India. According to a recent survey, India has the third most NFT companies headquartered worldwide.
Remarkably, the global market for NFT sales volume increased nearly 200 times in the first half of 2021 compared to the same period in 2020, reaching a whopping $2.5 billion. As a result, it’s no surprise that many regular users, investors, and financial professionals see several rewarding potentials in the NFT development and work hard to secure a major market share.
Here are 5 points which can help us to understand NFTs better
How Can Fintech Institutions Use NFTs?
NFTs have already had a big impact on the cryptocurrency market. With huge transformational and merging potential in the financial sector, NFTs are expected to merge with other blockchain applications to create an altogether new financial infrastructure. And the first thing that comes to mind when thinking about NFTs is the connection with decentralised finance (DeFi). DeFi is a rapidly expanding financial system based on blockchain technology that aims to abolish banks and institutions’ control over money, financial products, and financial services.
NFTs and DeFi were initially offered as separate applications, but it became obvious over time that NFTs could become a viable instrument for DeFi.
Despite several challenges to overcome and some aspects to streamline, many experts have already defined the ways fintech players may use tokens in their favour.
More Numbers of Partnerships and New Consumers
The simplest and most obvious approach to utilise NFTs in favour of financial institutions is to participate in sales or to organise a sweepstakes competition in which new clients can win an NFT.In addition, NFTs can be utilised to produce liquidity. Many financial companies create projects in which they offer innovative NFT-based services.
Finally, the NFT boom may encourage more traditional market participants to join in, resulting in more beneficial alliances and new solutions to strike the industry. NFTs