Nike offers its NFTs and digital sneakers despite limited enthusiasm in the digital art market: report

Nike Quietly Sells RTFKT Subsidiary After Closing Operations

According to Nike (NKE) has quietly divested RTFKT, its digital products and NFT-focused subsidiary, about a year after ceasing its operations.

The transaction reportedly occurred on December 16, with Nike describing the move as “a new chapter for the company and its community.” The sportswear giant has not revealed who purchased RTFKT or any financial details, and declined to comment further when approached by CoinDesk.

Wider NFT Industry Downturn

This development reflects a broader contraction in the NFT sector, which has been shrinking since its peak in 2021. NFT marketplace X2Y2 recently announced it would wind down operations due to falling trading activity, and NFT Paris, once a major industry event, canceled its 2026 conference.

Despite these changes, Nike stated it remains committed to creating innovative products and experiences across physical, digital, and virtual platforms.

RTFKT’s Rise and Closure

Nike acquired RTFKT (pronounced “artifact”) in late 2021, during the height of NFT popularity, as part of its push into digital collectibles and blockchain-based merchandise. RTFKT quickly gained recognition in the NFT world, partnering with artists and launching digital sneakers that sometimes fetched thousands of dollars.

In late 2024, Nike revealed plans to close RTFKT’s operations via a post on X, citing a strategic shift away from NFTs but a continued interest in digital and virtual products through collaborations with gaming companies. The closure triggered a class-action lawsuit in Brooklyn in April 2025, with investors claiming losses exceeding $5 million.

Leadership and Strategic Refocus

This sale comes under the leadership of CEO Elliott Hill, who assumed the role in 2024 and has since been steering Nike back toward its core athletic business and strengthening wholesale relationships.