Abstract
The present disclosure relates to a method and system for drawing down on an NFT’s value to fund a purchase in real-time. The method comprises transmitting a purchase request to an NFT Application Programming Interface (API) 108 hosted on a payment server seeking an authorization to purchase goods/services using the value of the NFT. In response to the purchase request, the NFT API 108 holding the NFT may transfer, via sale on the blockchain the NFT’s ownership to the merchant to settle and approve the transaction. Alternatively, the NFT API 108 may sell a portion of the NFT to the market to convert the NFT to a fiat currency and process the transaction using the fiat currency. Alternatively, the NFT API 108 may sell a portion of the NFT to a financial institution which has bid the most competitive terms to provide a credit facility to the purchaser. The financial institution will hold this as collateral against the credit facility that is provided. Once the collateral has been received, the financial institution will provide the fiat currency required to process the transaction. Once the proportionate amount of the NFT has been sold to fund the purchase, ownership of the purchaser of the NFT is drawn down and the transaction is approved. Finally, the payment server sends an authorization to the merchant and transaction is completed.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Recommended Citation
Oliver, Samuel James, "DRAWING DOWN ON THE VALUE OF A NON-FUNGIBLE TOKEN (NFT) AND ITS ASSOCIATED ASSET VIA SALE OR TRANSFER ON THE BLOCKCHAIN TO FUND AND OR PROVIDE CREDIT COLLATERAL ON A PURCHASE", Technical Disclosure Commons, (May 12, 2023)
https://www.tdcommons.org/dpubs_series/5890