Nike buys company that creates digital products such as sneakers and uses blockchain technology to guarantee authenticity

Nike is acquiring a virtual collectibles company, as it moves deeper into the metaverse.

The sportswear giant has agreed to buy RTFKT, a company founded in 2020 that creates digital products such as sneakers and uses blockchain technology to ensure the authenticity of products, according to a statement Monday. The finanacial terms of the contract were not disclosed.

"This acquisition is another step in accelerating Nike's digital transformation," CEO John Donahoe said in the statement. "Our plan is to invest in the RTFKT brand, serve and grow its innovative and creative community, and expand Nike's digital footprint and capabilities."

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More about M&A

In recent months, Nike has been charting its digital future. In late October, it filed seven applications with the US Patent and Trademark Office to protect its trademarks on "downloadable virtual goods" and related services. In November, it debuted its Nikeland world in the metaverse by partnering with the Roblox video game platform, where users can play games and dress their characters with Nike digital items.

Virtual worlds like Roblox are attracting more and more attention and investment from fashion and clothing brands, while the platforms give companies the opportunity to connect with younger users and raise awareness of their products.

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