XRP NFT Creator Predicts Onchain Trading Card Boom as TCG ETFs Enter the Picture
Blockchain-based trading card games could become a major growth area for Web3, attracting venture capital, hedge funds and potentially specialized exchange-traded funds (ETFs), according to Kaj Leroy, known as Brad Punkhouse, a developer in the XRP Ledger ecosystem and creator of the XPUNKs NFT collection.
Leroy believes the market is moving toward products that combine physical collectibles with blockchain technology, a development he says much of the crypto industry has yet to recognize. He sees traditional trading card games (TCGs) as a potential bridge between established consumer habits and digital asset ownership.
Why Blockchain Trading Card Games Could Gain Momentum
Trading cards have existed for more than a century, but blockchain technology introduces new ways to manage ownership, connect physical products with digital assets and facilitate trading. Leroy argues that mainstream consumers are more likely to engage with products they can understand and physically hold than with collections based entirely on digital images.
"Trading cards have been around for over a century, so none of this is new. What's new is crypto catching on," Leroy said. He added that mainstream audiences want accessible products with a tangible component.
Physical cards and the experience of opening booster packs can also encourage repeat participation and strengthen relationships between collectors. According to Leroy, these experiences create social connections that differ from simply monitoring the prices of profile-picture NFT collections.
However, building a successful blockchain-based TCG involves considerably more than producing attractive artwork or generating initial market interest. Leroy identified game design and functionality as the central challenges, particularly when developers must create balanced mechanics that remain engaging over time.
He noted that a deck containing 150 cards can produce more possible combinations than there are atoms in the observable universe, illustrating the complexity of designing and balancing a trading card game.
Fuzzycards Demonstrates the Physical NFT Model
Leroy pointed to Fuzzycards, his hybrid trading card project on the XRP Ledger, as an example of how digital collectibles can connect with physical products. The project issued approximately 100,000 booster packs, with NFT holders burning their tokens to have physical cards delivered.
The mechanism allows blockchain assets to serve as part of a process for accessing tangible collectibles. It also demonstrates how NFT ownership can be connected to the production and distribution of physical trading cards rather than remaining limited to digital items.
The approach is not confined to the XRP Ledger. Yuga Labs launched Mudwater cards on the Solana blockchain, with each physical pack held in storage linked to an NFT. The example indicates that the combination of physical trading cards and blockchain-based ownership is being explored across multiple ecosystems.
Early Development Could Give TCG Projects an Advantage
Leroy believes projects that began building their products early could benefit from a head start because physical goods require more time to manufacture and distribute than purely onchain products.
Production planning and logistics may therefore become important competitive factors as the sector develops. Projects that establish these processes in advance could be better positioned to deliver physical products as demand grows, although the eventual scale of the market remains uncertain.
Leroy compared the industry's potential trajectory with the expansion of the Pokémon franchise during the 1990s. He expects major intellectual properties, including Mario, Harry Potter and Tolkien's Middle-earth, to become candidates for blockchain-based trading card systems.
He argues that moving TCGs onchain could give rights holders greater control over secondary-market activity. However, the adoption of blockchain technology by these major franchises remains a prediction rather than a confirmed development in the material provided.
TCG ETFs and Institutional Capital Could Follow
Looking ahead, Leroy expects the trading card game sector to attract a broader range of financial participants, including venture capital firms, hedge funds and specialized ETFs.
"Next comes TCG ETFs, hedge funds, VCs and much more. The market is about to get a lot bigger. We're early," he said.
His outlook rests on the possibility that blockchain infrastructure, physical collectibles and established trading card communities will converge into a larger market. Whether that development leads to dedicated ETFs and substantial institutional investment remains to be seen.
source: u.today
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.