JP Morgan is officially the first major bank in the metaverse, having opened a virtual lounge in blockchain-based Decentraland in an effort to capitalize on a “$1-trillion” market opportunity, according to Cointelegraph.
The largest bank in the United States, JP Morgan, has taken a massive step into the metaverse, opening a virtual lounge in the popular blockchain-based world Decentraland after it labeled the sector as a $1-trillion opportunity.
Visitors to the lounge, situated in Decentraland’s Metajuku Mall, are greeted by a roaming tiger and a digital portrait of Jamie Dimon, CEO of JP Morgan. If players walk upstairs, they can watch an executive’s presentation on the economics of cryptocurrency.
The Onyx Lounge, named after JP Morgan’s in-house blockchain payments system, was unveiled alongside a report from the bank detailing the types of business opportunities companies can expect to find in the metaverse.
The report states, ”The Metaverse will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenues,” while also highlighting that $54 billion is already being spent on virtual goods each year — twice the amount spent on buying music.
The report notes the average price of virtual land doubled from $6,000 to $12,000 between June and December last year and predicts that in-game advertising spending will have reached $18.4 billion per annum by 2027.
JP Morgan has identified a rush of individual creators utilizing Web3 to monetize their work in new ways as a driving force behind the new economy being built in the metaverse.
The JP Morgan report wasn’t all positive, however.
In a section titled “Navigating hype vs. reality,” the report states, “Despite much excitement about the possibilities of the Metaverse, in order to enable its full potential for engagement, community building, self-expression and commerce, key areas need to be further developed and matured,” pointing to flaws in the overall user experience, poor performance of avatars and difficulties with commercial infrastructure.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
