The Winklevoss-led cryptocurrency exchange Gemini today announced its first acquisition: Nifty Gateway, a platform that facilitates the purchase of crypto collectibles, also known as non-fungible tokens (NFTs).
NFTs are digital tokens that represent unique crypto assets within blockchain-based games, such CryptoKitties and Gods Unchained. They are not interchangeable and cannot be traded like standard cryptocurrencies. Many of these tokens include skins, weapons and similar collectible items made to enhance gaming experiences.
Users can buy these digital items through Nifty Gateway using fiat or a standard credit card, making them accessible to players even if they have no prior experience with crypto. The market for “virtual goods” bought and sold through video games represents a $50 billion industry, according to Gemini.
“Non-fungible tokens and the digital goods (and collectibles) they enable will play a major role in the next era of the digital economy,” Tyler Winklevoss—CEO of the Gemini exchange—said in a statement.
“As Gemini continues to build the future of money, we will partner with or acquire companies led by entrepreneurs that share our mission and core values,” he said.
Widely regarded as one of the leading crypto exchanges in the United States, Gemini—founded in 2014—was one of the first companies to receive a BitLicense, a special regulatory permission in New York that allowed it to operate in its home state. The exchange offers various cryptocurrencies for traders, including Bitcoin, Ethereum, Litecoin, and Zcash. The company also recently expanded its services to Australia and launched Gemini Custody in September, which covers more than a dozen other cryptocurrencies.
With the acquisition of Nifty Gateway, Gemini is now also poised to provide dapp and game developers with tools designed to make the process of selling NFTs easier.