JPMorgan becomes the first major bank in the Metaverse

The largest US bank, JPMorgan, has taken a massive step into the Metaverse, opening a virtual lounge in the famous blockchain-based world decentralization After describing the sector as a “trillion dollar opportunity”.

Visitors to the hall located in the Decentraland Mitagoku Mall, greeted by a roaming tiger and a digital photo of Jamie Dimon, CEO of JPMorgan. If players walk upstairs, they can watch the CEO’s presentation on the economics of cryptocurrency.

JPMorgan’s metaverse bank (Source: Decentraland)

The Onyx Lounge is named after J.P. Morgan In House Blockchain payments system revealed along with Transfer From the bank, detailing the types of business opportunities businesses can expect in the Metaverse.

The report states: “The Metaverse is likely to infiltrate every sector in some way in the coming years, with an estimated market opportunity of over $1 trillion in annual revenue,” while also highlighting that $54 billion is already spent on virtual goods each year – Double the amount spent on buying music.

The report notes that the average price of virtual land doubled from $6,000 to $12,000 between June and December of last year, and it expects spending on in-game advertising to reach $18.4 billion annually by 2027.

JPMorgan has identified a dash of individual creators using Web3 to monetize their businesses in new ways as the driving force behind the new economy being built in the Metaverse.

“This democratic economy of ownership, along with interoperability, can open up huge economic opportunities, as digital goods and services are no longer captive to a single gaming platform or brand.”

The increase in mainstream adoption of the Metaverse is also driven by interest from huge brands, notes JPMorgan, citing Adidas And Nike’s move to create NFT-based products and storefronts Beside Samsung opens Metaverse store As huge steps forward in adoption.

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As if to underscore the point, Disney announced this morning that it has officially done so Eye A new CEO, Mike White, is to lead his foray into the Metaverse. According to a note from Disney CEO Bob Chapek, Disney is looking to expand its storytelling prowess to the digital world. “Today, we have an opportunity to connect those universes and create a whole new paradigm for how audiences experience and interact with our stories,” said Chapek.

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But the JPMorgan report was not positive.

In a section titled “Navigating between hype and reality,” the report stated that “despite the great excitement about the capabilities 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,” noting the flaws In the overall user experience, the poor performance of avatars, in addition to difficulties in the commercial infrastructure.