The Wall Street bank has become the first bank in the world to open a branch in the blockchain-based Decentraland.
JPMorgan is the largest bank in the United States and the first bank in the Metaverse to open a branch in Decentraland, a virtual world based on blockchain technology.
The branch is named Onyx, which comes from the bank’s suite of Ethereum-based services. However, opening a virtual branch is not all. JPMorgan is taking the whole thing seriously and has also published a document that describes how different companies can find opportunities in virtual reality.
“Clients are interested to learn more about the metaverse,” said Christine Moy – head of cryptocurrencies and metaverse at JPMorgan, in an email. “We created the White Paper to help clients find the right information and highlight what the current reality is and what needs to be built next in terms of technology, trading infrastructure, privacy/identity and workforce to maximise the full potential of our lives in the metaverse.”
Last year saw rapid growth and acceptance of the metaverse. We have non-transferable tokens (NFTs), games, world building and entertainment, all driven by integrated commercial applications. In January, Samsung opened a version of its New York shop in Decentraland in November Barbados opened its virtual embassy there.
The four main worlds in the Web 3 Metaverse are: Decentraland, The Sandbox, Somnium Space and Cryptovoxels. JPMorgan indicated that the average price of virtual land in these worlds doubled in the second half of 2021, from $6,000 in June to $12,000 in December.
“Over time, the virtual property market may begin to see services similar to those in the physical world, including loans, mortgages and leases,” the JPMorgan report said. It added that decentralised financial collateral management (DeFi) could also come into play, and that instead of traditional finance companies, this could be done by decentralised autonomous organisations (DAOs).
Working in the metaverse will also be lucrative, says the JPMorgan report, pointing to a number of entertainment providers and apps like RTFKT-a virtual shoe designer recently acquired by Nike. A big spend needs to be prepared for advertising, says the bank, citing a forecast that by 2027, ad spending on games is expected to reach $18.41 billion.
In its release, JPMorgan attempts to illustrate the hype around the metaverse versus reality, stating that many areas need improvement. These include the overall user experience, avatar performance and commerce infrastructure.
“We believe that the existing virtual gaming landscape (each virtual world with its own population, GDP, in-game currency and digital assets) has elements that parallel the existing global economy,” – reads the bank’s report. “This is where our long-standing expertise in cross-border payments, currency exchange, financial asset creation, trading and storage, complemented by our mass consumer base, can play an important role in the metaverse.”
You may be wondering about all this, you may not fully understand the virtual world and how it works. However, you have to admit that since countries and well-known companies are buying virtual lands, opening their subsidiaries it’s good to be familiar with it and maybe even get into the trend and make money?
If you are interested in such trends you can find them HERE.
16/02/2022 Mr.Advice TEAM