Upstream Enables Custodial Accounts for Minors to Safely Enter NFT Market
Custodial Accounts allow minors to safely participate in NFTs & IPOs
By Anastasia Samaras
Upstream is proud to announce the latest release which features ‘Custodial Accounts,’ enabling children and teens under 18 to safely participate in NFT and IPO offerings on our exchange.
A parent or guardian can now generate a KYC identity verification code on their account and share it with their child. The child then enters this code into their Upstream app which tethers them to their parent or guardian’s verified account.
Using Upstream’s new Account-Management feature, parents can transfer funds, NFTs, and securities to the child’s Upstream blockchain wallet. They are then free to safely collect, buy, sell, bid or auction NFTs and securities.
Upstream focuses primarily on fan engagement NFTs across sports, music, and entertainment made accessible to the masses. Giving NFT access to fans of all ages marks what we believe to be a novel step for the industry.
Upstream Custodial Account Differentiators
Upstream takes a comprehensive, yet user-friendly approach to unlock the world of NFTs and IPOs for the younger generation.
For most other NFT platforms, users must be 18 and over to partake in NFT experiences. However, most NFT platforms don’t require KYC identity verification. This makes it easier for underage individuals to find ways to join platforms regardless of their age, which can be risky for all involved.
Upstream, a MERJ Exchange Market, is the first regulated exchange powered by the blockchain to offer both NFT and securities trading. We have taken a proactive approach to seamlessly integrating KYC and AML into our trading ecosystem which keeps buyers and sellers protected.
In addition to not being to fund their own accounts, minors cannot withdraw money from their account. To cash out a position, the child must ask their parent to pull the money, NFTs, or shares from their account back to the parent’s app where the parent can then withdraw as normal.
Unlocking a Familiar World
Children today grow up with an innate understanding of blockchain, Web 3.0, and smartphones.
NFTs are digital collectibles. Just like past generations enjoyed collecting and trading physical Pokémon and Baseball cards, today’s young fans can now enjoy these online equivalents.
We’re already seeing immersive experiences integrated into popular video games. Kids and teens are purchasing premium ‘skins’ or packs on Fortnite or League of Legends, allowing fans to show their love for fan-favorite or rare characters. They’re building a digital presence through avatars and attending meetups and virtual concerts in Fortnite.
NFTs are a natural continuation of this. NFTs on Upstream can be leveraged to prove ownership of digital collectors’ items, enable access to online events and act as rewards. NFTs have already started to become an interesting component of the play-to-earn gaming structure, in which players earn funds by selling and trading NFTs in-game.
NFTs are highly gamified which inevitably attracts younger generations. Upstream’s trading environment creates a safe place for minors to participate in these types of digital experiences under the guidance of their parent or guardian all while potentially earning profits.
*NFTs received have no economic value, royalties, equity ownership, or dividends. NFTs are for utility, collection, and display only.
*U.S. investors are not permitted to trade in upstream listed securities. U.S. and Canadian citizens will only be able to trade in a security they currently own that has listed on upstream for liquidation only.