Non-fungible tokens* (NFTs) have been turning heads in the world of business, according to GlobalData. The leading data and analytics company’s Filing Analytics platform saw a massive 20x jump in mentions of the keyword ‘NFT’ in company filings in 2021, compared to 2020. This was coupled with a rise in sentiment of 13%.

Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “NFTs have been making headlines lately, with people selling pieces of digital art for millions. Considering this rise in digital consumerism, NFTs could help to propel brand value. Sentiment around NFTs is on par with that of cryptocurrency, suggesting that corporates expect a scope for disruption.”

Charlotte Newton, Analyst on the Thematic Research team at GlobalData, adds: “Hype begets hype. When big brands such as Gucci and Coca-Cola start dabbling in NFTs, either as a marketing strategy or a way to generate new revenue in what is an emerging virtual economy, then it is bound to come up in more boardrooms.”

‘Digitalization’ and ‘Ecommerce’ were key themes discussed around NFTs in both 2020 and 2021. ‘Marketplaces’ also saw key mentions in 2021.

Kiran Raj, Principal Disruptive Tech Analyst at GlobalData, expects NFTs to disrupt the intellectual property (IP) industry. A lack of patent ownership transparency can be avoided with Licensees gaining more IP transaction value via the ease of commercializing patents via NFTs. Tailoring patents as NFTs could help companies seek funding via smart contracts and prevent forgery due to the uniqueness of the NFT.

Pereira concludes: “Using digital IP NFTs is likely to add to a company’s brand value. When licensed, unique collectibles appeal to a larger fan and customer base. This has fuelled discussions around NFT marketplaces among corporates, which wish to provide a more interactive experience for consumers – for example possessing a more ‘unique’ physical asset.”

* NFTs are a way to transform a digital good that can be endlessly copied – such as an image, video, or message – into something unique, which is then verified on a blockchain. It is a digital version of a certificate of authenticity. NFTs often act as collectibles that consumers can purchase and store, like Pokémon cards or an original painting.