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So you’ve just heard about NFTs and now someone’s saying “phygital NFT.” Sounds extra, but it’s actually smart and useful for real businesses. This guide breaks down phygital NFTs in plain language, shows how they differ from regular or redeemable NFTs, and gives fast, practical advice for beginners and business owners. No tech fluff. Just how-to and why-it-matters. Also, if you want to launch phygital NFTs without chaos, Mintology is a solid place to start.
What is a phygital NFT?
A phygital NFT is a digital token that’s linked to a physical item or experience. Think of it as one asset with two faces: the online NFT and the real-world object or event that comes with it. The digital side lives on a blockchain and has proof of ownership. The physical side could be a product, ticket, wearable, artwork, toy, or even access to an event.
How phygital NFTs work
- A brand mints the NFT and ties it to a physical product or experience.
- The buyer gets the NFT in their crypto wallet and either:
- receives the physical item shipped to them, or
- redeems the NFT in person at a store or event, or
- gets both digital and physical instantly depending on setup.
- The blockchain keeps a permanent record so ownership and provenance are verifiable.
Phygital NFTs vs redeemable NFTs
They overlap, but here’s the quick difference:
- Redeemable NFTs are tokens you swap or redeem for something else, often later.
- Phygital NFTs combine a digital token and a physical item as part of the same product or experience. So every NFT can be redeemable, but not every redeemable NFT is phygital.
Related: How major luxury brands boost revenue with NFTs
How to buy or sell phygital NFTs (for newbies)
Buying or selling a phygital NFT depends on how the brand set it up:
- Online sale: brand launches the NFT drop and you buy it online. The physical item gets delivered or becomes redeemable.
- In-person sale: you buy the physical item in-store or at an event and it comes with a code or QR that links you to the NFT.
- Hybrid: some brands give both instantly, so no redemption step is needed.
If you’re a business owner selling phygital NFTs, you’ll need a platform that handles minting, redemption, and physical logistics. For a smooth experience check out Mintology which helps brands mint phygital NFT drops and manage redemptions without a huge developer team.
Launch Your Phygital NFT Collection
Why businesses should care about phygital NFTs
Phygital NFTs are not a fad for collectors only. They are tools for real business goals:
- Make web3 approachable: Customers who love physical products get introduced to NFTs naturally.
- Boost loyalty and repeat buys: Use phygital NFTs as loyalty tokens, membership passes, or limited merch drops.
- Prove authenticity: Blockchain records help fight counterfeits and prove provenance for luxury or limited items.
- Create unique experiences: Tie special events, backstage access, or IRL perks to NFT ownership to increase perceived value.
Benefits in plain terms
- Tangible plus digital equals higher perceived value.
- Flexible buying options improve customer convenience.
- New marketing angles for product launches and events.
- Stronger community and PR opportunities from exclusive drops.
Where your phygital NFTs live
The digital half of a phygital NFT sits in a crypto wallet, same as other NFTs. Wallets let you send, receive, and hold tokens. For many shoppers, the wallet experience is the biggest friction point, so businesses should choose tools that simplify onboarding and custody options. Mintology helps brands offer smoother onboarding and manage the redemption flow so customers don’t get lost in wallet setup.
Real-world examples
- Brands that sell limited physical items plus NFTs to add digital ownership and perks.
- Sneaker collabs where buyers redeem NFTs for physical shoes and unlock exclusive digital versions.
- Toy lines that include QR codes to claim NFTs that unlock online worlds or badges.
These use-cases show how phygital NFTs can be used for product launches, loyalty programs, or event access—all practical business moves.
Timex x Bored Ape Yacht Club Community Forge Pass
Phygital NFTs have helped brands create more exciting ways to connect with new and existing communities. For instance, in 2022, Timex (the watch company) partnered with Bored Ape and Mutant Ape to create a phygital activation that started at Art Basel in Miami and continued for a few weeks afterward.
During Art Basel, at an invite-only launch party, partygoers could buy a phygital NFT that would allow them to create a custom physical Timex watch that would ship later with a corresponding NFT that served as the digital component. A week or so after the in-person event, Bored Ape and Mutant Ape’s existing community members were also given the unique opportunity to purchase the phygital NFT online.
Timex x Bored Ape Yacht Club Community Forge Pass
RTFKT x Nike Air Force 1
The virtual sneaker company RTFKT has gained a reputation for hosting forging events (events where NFT holders are able to redeem both physical and virtual goods) around their latest phygital partnerships. This past spring, the event centered around the Nike Air Force 1 collection.
The collection featured limited-edition designs by Japanese contemporary artist Takashi Murakami that launched on April 24th and ran until May 8th. By purchasing one of these phygital NFTs, users could participate in the forging event that would allow them to redeem the physical sneakers.
RTFKT x Nike Air Force 1
Pudgy Penguins, Pudgy Toys
Pudgy Penguins is a collection of 8,888 NFTs created in July 2021 with the intention of accelerating web3 innovation through IP utilization and community empowerment.
In May 2023, Pudgy Penguins, a brand known for their phygital strategy that sells NFTs and stuffed penguins and figurines, released Pudgy Toys, a line of physical toys with accompanying NFTs, on Amazon. Pudgy Toys sold over 20,000 toys and made over $500,000 in sales through their Amazon storefront.
These toys include stuffed penguins and figurines, each accompanied by a QR code granting access to Pudgy World. Pudgy World is linked to a blockchain wallet, soulbound (or non-transferrable) NFT, and tradeable NFT, accessible through email registration. Pudgy Penguins used the physical toy as a “Trojan Horse” to seamlessly introduce NFTs to those buying the toys, thus turning it into a phygital product.
Pudgy Penguins, Pudgy Toys
Louis Vuitton Treasure Trunk NFTs
Louis Vuitton is one of the most noteworthy brands in the fashion world to take on phygital NFTs. On June 8th, the brand unveiled a set of digital Treasure Trunk NFTs that come with a physical replica. These physical-linked NFTs are limited to a few hundred items and are part of Louis Vuitton’s new “Via” initiative.
The Treasure Trunks, priced at close to $40,000, grant owners access to future Louis Vuitton collections, some with physical elements, experiences, and a community of other holders. While holders will not be able to sell or transfer their soulbound (non-transferrable) Treasure Trunk NFT, they will be able to sell or transfer items they mint in the future through their ownership of it.
Owning a Via Treasure Trunk NFT grants owners access to digital and physical experiences, including the right to purchase digital keys gaining them access to future Louis Vuitton collections, including Pharrell Williams’ first collections as the Creative Director of the brand.
Louis Vuitton Treasure Trunk NFTs
How to start selling phygital NFTs as a business
- Decide the value: What physical item or experience pairs with the NFT? What perks will owners get?
- Pick a platform: Choose a solution that handles minting, payment, and redemptions without heavy dev work. Mintology is built for brands to create phygital NFT campaigns and manage redemptions smoothly.
- Plan logistics: Shipping, in-person redemption spots, or event check-ins need clear processes.
- Onboard customers: Keep wallet setup optional or simple. Offer email registration or custodial options if possible.
- Market the drop: Use scarcity, community perks, and IRL events to drive demand.
- Measure and iterate: Track redemptions, engagement, and repeat purchases to refine future drops.
Phygital NFTs are one of the clearest ways to connect real customers with digital ownership. For business owners, they open new revenue and loyalty channels while making web3 less scary for mainstream buyers. Start small, plan logistics, and use a platform that handles the tech and redemption flow for you. If you want a business-friendly, no-fuss way to launch NFT drops try Mintology and skip the technical nightmare.
FAQs on Phygital NFTs
A phygital nft is an NFT that comes with a physical item or real-world experience. You get something digital and something physical at the same time.
You buy the NFT, claim the physical item, or buy the physical item and scan a code to claim the NFT. It depends on how the brand sets it up.
Not always. Some brands let you buy with card payments or email-based claims. Platforms like Mintology make this way easier for beginners.
Regular NFTs are fully digital. Phygital nfts combine digital ownership with a real product, collectible, or experience.
Yes, they use blockchain tech for ownership and authenticity. Just make sure the brand uses a reputable platform like Mintology for minting and redemption.
Usually yes, unless it’s soulbound. If the NFT is transferable, you can resell the digital part and sometimes even the physical item if it hasn’t been redeemed.
Anything from toys, sneakers, art, luxury fashion, event tickets, collectibles, membership passes, and more. Brands get super creative with it.
It goes into your crypto wallet. Some platforms let you claim via email first so you don’t get overwhelmed with wallet setup on day one.
They help boost loyalty, create hype, fight counterfeits, and make digital ownership easier for everyday customers. Basically, they level up customer experience.
Use a no-code phygital nft platform like Mintology. It handles minting, QR onboarding, redemptions, and all the annoying technical stuff so you can focus on the product and campaign.