The bank has released a whitepaper in order to explore and present the possibilities of metaverse for brands and consumers.
“We are not here to suggest the metaverse, as we know it today, will take over all human interactions, but rather, to explore the many exciting opportunities it presents for consumers and brands alike,” said the report which is co-authored by Christine Moy, Global Head of Liink, Crypto and Metaverse, and Adit Gadgil, Head of E-commerce and Technology, Media and Telecommunications.
“Whether it’s large tech players such as Microsoft planning to create realistic workspaces, or Ariana Grande holding a concert in Fortnite, the opportunities presented by interactive, digital worlds seem limitless.
JP Morgan Chase & Co, which is the largest bank in the United States (US) has become the first bank in the world to enter Metaverse on Wall Street. Metaverse is an immersive network of 3D virtual world-transforming workplaces and online interactions. JP Morgan has started a lounge named ‘Onyx’ on the blockchain-based metaverse platform Decentraland.
The visitors of the lounge will be greeted by a virtual tiger roaming around and the digital portrait of JP Morgan CEO Jamie Dimon. The CEO’s digital portrait accompanies details of opportunities for virtual opportunities.
Jpmorgan becomes first to install
The bank predicts that the metaverse will eventually become a $1 trillion market opportunity in annual revenues, given that its virtual worlds will “infiltrate every sector in some way in the coming years,” according to Moy’s report. JPMorgan’s estimate compares to rival investment bank Goldman Sachs’ (GS ) exuberant forecast that the metaverse will grow into an $8 trillion market.
Although JPMorgan has become the first bank with a presence in the metaverse, it still has a long way to go before capitalizing on the predicted growth. Potential headwinds include the downturn in crypto assets and tech stocks, the looming bearish specter of Federal Reserve rate hikes, and the enormous task of attracting real customers to virtual banking.
As popular late-night comedian Stephen jokes show, banks in the metaverse will likely face challenges with gaining customers like in reality.
Jpmorgan becomes first to inazuma
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,” said the report.
The report furthermore states that several new technologies have come together to enable this vision of the metaverse. Augmented reality (AR) and virtual reality (VR) headsets have become cheaper and more powerful, which are improving the user experience. It also mentions that blockchain has enabled digital currencies and NFTs.
“The new methods to transact and own digital goods are allowing creators to monetize their activities through tokens,” the report stated.
What is Metaverse? – Going by the literal meaning, ‘Meta’ means is a Greek prefix term that means ‘Beyond’ and ‘Verse’ is referred to as ‘Universe’.
Jpmorgan becomes first to inch
With the mainstream acceptance of things like non-fungible tokens (NFT), the past year has seen a breathless advance into the metaverse, fueled by integrated commerce applications. In January, electronics giant Samsung opened a version of its New York store in Decentraland and in November Barbados established a metaverse embassy, also in Decentraland.
JPMorgan begins its assessment of “metanomics” by pointing out that the average price of a parcel of virtual land doubled in the latter half of 2021, jumping from $6,000 in June to $12,000 by December across the four main Web 3 metaverse sites: Decentraland, The Sandbox, Somnium Space and Cryptovoxels.
Credits: Coin Telegraf
“In time, the virtual real estate market could start seeing services much like in the physical world, including credit, mortgages and rental agreements,” said the JPMorgan report.
Jpmorgan becomes first to invent
JPMorgan has become world’s first bank to enter a completely virtual world of the metaverse.
Within Decentraland, users can buy virtual plots of land in the form of NFTs and make purchases using cryptocurrency backed by the Ethereum blockchain.
Users have described their experience in the Onyx lounge on Twitter, noting the picture of CEO Jamie Dimon and a tiger lurking around. On top of that, the company released a paper explaining the opportunities they are exploring in the metaverse.
“There is a lot of client interest to learn more about the metaverse,” Christine Moy, JPMorgan’s head of crypto and the metaverse, said in an email.
Decentraland specifically has enjoyed growth, as Barbados in November established a metaverse embassy in Decentraland, and Korean electronics giant Samsung (SSNLF ) in January opened a version of its New York store in the virtual world.
JPMorgan said it believes in “metanomics,” noting the average price of a parcel of virtual land doubled in the second half of 2021 from $6,000 in June to $12,000 by December across the four main Web 3 metaverse sites of Decentraland, The Sandbox, Somnium Space, and Cryptovoxels. Moy’s report added that the virtual real estate market could start seeing services much like in the physical world, including credit, mortgages, and rental agreements, with some work done by decentralized autonomous organizations.
JPMorgan is especially bullish on the potential for growth in the metaverse.
The report explains ‘Metaverse’ as a ‘seamless convergence of physical and digital lives’ that creates a unified virtual community where people may work, play, relax, transact and socialize. Elaborating that due to the continuous emerging nature, it further adds that there is no ‘singular, all-encompassing definition’ of metaverse that people can look up to.
The most important aspect is, that just like people are supposed to wear special glasses to have the experience of 3D movies in cinema halls, the people entering metaverse are supposed to wear Virtual Reality (VR) gear or Augmented Reality (AR) gear. The phenomenon of Metaverse is not a new thing.
The so-called metaverse–a catch-all term for immersive gaming, world-building, and entertainment in virtual worlds, fueled by integrated commerce applications–has become a hot topic of the future ever since social media giant Facebook publicly changed its name to Meta Platforms (FB ) last year. This “next-gen” internet recently several traditional firms have been trying to enter the metaverse and gain initiative in something that might be the next big thing for technology.
JPMorgan Chase(JPM ), the largest bank in the U.S., announced this week it has become the first financial institution to arrive in the metaverse, after opening a lounge in Decentraland, one of the most popular virtual worlds based on blockchain technology.
Ethereum ecosystem, where visitors are greeted by a digital portrait of Jamie Dimon and a roaming virtual tiger. The bank also released a paper exploring how businesses can find exciting opportunities in the burgeoning metaverse.
JPMorgan head of crypto Christine Moy explained the bank’s sentiments in the paper: “There is a lot of client interest to learn more about the metaverse. We put together our white paper to help clients cut through the noise and highlight what the current reality is, and what needs to be built next in technology, commercial infrastructure, privacy/identity and workforce, in order to maximize the full potential of our lives in the metaverse.”
As crypto-related ideas like non-fungible tokens and decentralized finance enter the mainstream, corporations have made a curious advance into the metaverse.
JPMorgan has become the world’s first bank to set up shop in the metaverse. The largest bank in the US has opened a lounge in the blockchain-based world Decentraland. Users can create their virtual avatars, build virtual spaces and roam in the lounge christened ‘Onyx Lounge’ after its suit of Ethereum-based services. The lounge also features a digital image of the bank’s CEO Jamie Dimon.
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What is Metaverse?
Metaverse is a virtual universe where users can do multiple activities like socialising, shopping or even attending events through their avatar.
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