Tokenized Pokémon Cards: How They Work and Where to Buy Them

If you’re anything like us, your FYP is filled with people ripping Pokémon packs, collector conventions, and seeing early morning queues for new card releases. This hype around Pokémon cards hasn’t been limited to physical packs. Tokenized Pokémon cards have also received significant attention over the past year, with TCG marketplaces like Collector Crypt, a primarily Pokémon-based platform, generating over $60 million in revenue so far in 2026, reported by DeFi Llama.

This guide will cover everything you need to know about tokenized Pokémon cards: what they are, how they work, the benefits, risks, how to invest, and where to find them. So, if you’re thinking about expanding your collection on the chain, this one’s for you.

What are tokenized Pokémon cards?

Tokenized Pokémon cards are digital, blockchain-based representations of authenticated physical Pokémon cards that are stored in vaults. They are designed to represent the corresponding physical card on a 1:1 basis, making them easier to trade globally without the complications and risks associated with physical shipping.

They are called tokenized Pokémon cards because the process is similar to real-world asset tokenization: converting ownership rights into a blockchain-based token, in this case, a unique NFT.

How do tokenized Pokémon cards work?

The general process of Pokémon card tokenization follows this structure:

1. Authenticate the Pokémon card

To tokenize a Pokémon card, you need the physical card, and it needs to be legit. Many marketplaces will only accept professionally graded cards from companies such as PSA, BGS, or CGC. Professionally graded cards are assessed for authenticity and condition, while factors such as rarity and demand can also affect their value.

2. Securely store the card

Collectors then send their graded Pokémon cards to marketplaces or their designated vaulting partner, depending on the platform. These companies often use third-party secure vaults to store the cards; for example, Collector Crypt uses PWCC vaults to ensure institutional-grade security to protect from damage or theft. These vaults are also climate-controlled to maintain the card's condition while it is in storage.

When the card arrives at the storage facility, it is documented with a unique identification number and high-resolution scans of both sides of the card. This documentation system helps the platform identify the physical card if the owner later chooses to redeem it.

3. Create a digital token

The card is then represented on-chain as a token using smart contracts and NFT token standards to create a unique on-chain token representing the card. They also reference metadata that contains information about the card’s grading certification, the scans, and when it was stored. Once you receive the NFT, ownership of the token is recorded on the blockchain.

4. Trading cards and ripping packs

If a collector sends their own card for tokenization, the NFT is assigned to them, and they can hold, sell, or trade it.

The fun happens when marketplaces acquire the cards. These NFTs can be distributed through randomized, gacha-style packs based on predefined odds. Users can use cryptocurrency to buy these packs and rip them - similar to the real-world experience. Users can then decide whether to keep the NFTs (cards) or instantly sell them back to the platform.

5. Redeem the Pokémon card

If you decide to redeem the NFT for its physical equivalent, you can burn the token. This process removes the token from circulation and notifies the vault to prepare and ship your Pokémon card to you. Users will often have to pay a withdrawal fee and shipping costs.

Which Pokémon cards can be tokenized?

The Pokémon cards that can be tokenized depend on the marketplace and its eligibility requirements. However, there is a draw to more valuable and socially and historically significant cards such as:

• Vintage Pokémon cards

• First edition cards

• Rare promotional cards (e.g. tournament prizes)

• Limited-distribution cards

• Special illustration cards

Why tokenize Pokémon cards?

There are several benefits for a collector to tokenize their Pokémon cards, such as:

• Easier global trading: When trading physical Pokémon cards, collectors need to package and ship them. Tokenized Pokémon cards can be traded instantly without the physical card ever being subject to shipping risks.

• Lower transaction costs: Traditional marketplaces that collectors would usually trade on, like eBay, have a 13.6% transaction fee on Trading Card sales up to $7,500. Whereas the transaction fees on platforms trading tokenized Pokémon cards are usually only around 2%-5%.

• Better liquidity: Instant global trading and certain platforms offer additional benefits to improve liquidity, such as buyback features.

• Ecosystem growth: There are fewer people trading tokenized Pokémon cards, but as the hype grows, platforms imply they will reinvest into growing their ecosystem to attract collectors and increase trading activity.

• Secure storage: Rather than having to store and handle graded cards yourself, the physical equivalent of a tokenized card remains in secure, climate-controlled vaults.

• New opportunities for investors: Tokenization creates new investment opportunities on the blockchain, allows collectors to find and buy cards located on the opposite side of the world, and provides new collectors with an easier point of entry (without camping outside of a store waiting for a drop).

Risks of tokenized Pokémon cards

Despite the growing popularity of tokenized Pokémon cards, they are not risk-free.

• Market volatility: The value of Pokémon cards fluctuates depending on demand in the collector space and economic conditions. As tokenized cards are tied 1:1 to the physical cards, they are still subject to the same price swings.

• Liquidity risk: Despite efforts to grow the market, there is not always someone on the other side buying the NFT. This is one area where traditional, long-standing marketplaces still have an advantage. eBay does not offer the same instant, on-chain trading experience, but its large user base can provide access to a broader pool of potential buyers.

• Security risk: Storing cards in vaults means you are trusting third-party companies to keep your cards secure and undamaged. This is why marketplaces employ vaulting partners like PWCC.

• Smart contract risks: Tokenized cards rely on smart contracts, which can be vulnerable to errors and hacking.

• Regulatory uncertainty: The SEC could treat tokenized Pokémon cards as securities, requiring stricter compliance with registering assets. Regulations around tokenization continue to change.

Which platforms sell tokenized Pokémon cards?

There are a few different platforms you can choose from. We have compared some of the most popular choices.

How to buy tokenized Pokémon cards

If you’re looking to buy your first tokenized Pokémon card, here’s a step-by-step guide to get you started:

1. Set up a wallet: You will need a compatible crypto wallet supported by your chosen platform.

2. Fund your wallet: Make sure your wallet contains the crypto required by the platform, such as SOL for a Solana-based marketplace.

3. Search the marketplace: Go to your chosen platform and browse the marketplace for individual cards or gacha-style packs.

4. Buy and rip a pack: Choose what you want to buy, confirm the transaction. If you’ve purchased a pack, you can rip it and decide either to keep the cards or sell them back to the platform.

The future of tokenized Pokémon cards

In the first week of May 2026, tokenized Pokémon TCG marketplaces saw a record-breaking $7.4 million in aggregated revenue, according to The Block.

This success has also attracted platforms such as Jupiter, a Solana DEX, which launched their Jupiter Gacha with tokenized, graded Pokémon and One Piece cards.

Many see the growing popularity and interest in tokenized Pokémon cards as a lifeline for NFTs. However, the long-term outlook remains uncertain, particularly given that interest has significantly waned across the broader NFT market since the 2021-2022 boom.

Are tokenized Pokémon cards taxed?

Tax treatment for tokenized Pokémon cards varies by country, and tax rules for onchain gacha have yet to be clearly established.

Tax on buying single Pokémon card NFTs

In the U.S., the IRS has indicated it may use a ‘look-through’ analysis to determine whether certain NFTs qualify as collectibles (including trading cards). So, if you are purchasing single, stand-alone Pokémon cards, you would be taxed on the underlying asset that the NFT represents.

Holding the NFT is not a taxable event. However, profits from selling your tokenized Pokémon card could be subject to Capital Gains Tax. As a collectible, it may be treated with a maximum long-term capital gains rate of 28% if held for over a year. If held for one year or less, gains are taxed at ordinary income tax rates.

If you are redeeming the card by burning the NFT, this is a taxable event, as it is seen as a disposal of the NFT. This could be taxed as a Capital Gain or Loss calculated by subtracting the cost basis of the card when you bought it from the price of the card at disposal.

Tax on tokenized Pokémon card packs

There is no guidance from the IRS about online gacha and whether this is considered gambling or not. The following information is speculative, not tax advice. It is recommended that you consult a tax advisor on your specific situation.

Treated as gambling

If onchain, gacha-style packs were to be classified as gambling in the U.S., the IRS treats gambling winnings as income and every wager as a gambling loss. Your gambling losses are only deductible against your gambling winnings, and these deductions are capped at 90%. Meaning, even if you break even, you still owe 10% in Income Tax. For more information on gambling taxes, check out our crypto gambling tax guide.

Treated like Capital Gains

If each gacha purchase is treated with Capital Gains and Losses rules, the 'wager' (what you paid to purchase the pack) would be the cost basis. When you sell the card, the Capital Gain or Loss is the difference between the cost basis and the price you sell it for.

It can get complicated, so you must track your purchase prices, sales prices, and transaction dates, which may be required when filing a tax return.

Koinly can help you manage your NFT portfolio and calculate your crypto taxes. Just sign up and import your transactions to begin calculating your tax liability.