Reddit crypto payments will soon be available to users in the U.S., Australia, the EU and other markets with a newly announced partnership with crypto exchange FTX.
In a joint statement on Tuesday, Sam Bankman-Fried stated that the platform plans to integrate Reddit’s Community Points. Reddit Community Points, introduced in May 2020, are a measure of reputation in subreddits that allow users to own a portion of their favorite communities.
Reddit crypto payments will unlock new perks
The collaboration includes the integration of FTX Pay as a payment and crypto exchange solution to unlock new crypto-enabled Reddit Community Points privileges.
Arbitrum, one of the most popular scaling solutions for Ethereum, is the foundation of Reddit Community Points.
With the new integration, users will be able to utilize FTX Pay, the company’s payment and exchange infrastructure platform, to buy Ether (ETH) through compatible Reddit apps. The coin can be used to pay network costs for Community Points transactions on-chain and blockchain gas expenses.
Reddit, one of the most well-known websites in the US, has long been heavily active in the cryptocurrency and blockchain industries. The discussion site was originally recognized for letting users use Bitcoin to pay for their premium memberships, but in 2018 they no longer allowed this option.
FTX aims to harness full power of blockchain
According to Bankman-Fried, the partnership with Reddit demonstrates FTX’s dedication to empowering online communities to leverage the power of blockchain.
“FTX Pay’s payment and exchange infrastructure integrate with Reddit Community Points, making the customer experience a more seamless process,” he said.
It’s worth noting that Reddit co-founder Alexis Ohanian has been heavily active in the cryptocurrency industry, and last year, he established a $100 million Web3 investment fund. Later, Ohanian unveiled a second $200 million Web3 and social media fund in association with Polygon, an Ethereum scaling solution.
In addition to Reddit and FTX, companies like QuickNode, Consensys, Google Cloud, P2P also took part in the launch by joining Arbitrum Nova’s “Data Availability Committee” as its first members.
The announcement coincides with Tuesday’s introduction of the Arbitrum Nova chain by Arbitrum developer Offchain Labs. The second chain to be introduced in the Arbitrum ecosystem, Arbitrum Nova, is the best option for Web3 gaming and social apps.