JPMORGAN has become the first bank to enter the metaverse after opening a lounge in Decentraland.
The Onyx lounge (the name refers to the bank’s blockchain unit formed in 2020) is located at the Metajuku mall, a virtual version of Tokyo’s Harajuku shopping district.
A tiger is located on the first floor, and a picture of the bank’s CEO Jamie Dimon hangs on the wall.
A winding staircase then leads to the second floor, where users can watch experts talk about the crypto space.
Along with the lounge unveiling, JPMorgan also released a document outlining how businesses can find opportunities in the metaverse.
JPMorgan isn’t new to blockchain technology and its use in financial transactions, as evidenced by its own JPM Coin.
Christine Moy, JPMorgan’s head of crypto and the metaverse, said: “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 maximise the full potential of our lives in the metaverse.”
The metaverse, JPMorgan said, has the potential to be a $1trillion per year industry, as creators tap into Web3 to monetise their work in new ways.
The report said: “This democratic ownership economy coupled with the possibility of interoperability, could unlock immense economic opportunities, whereby digital goods and services are no longer captive to a singular gaming platform or brand.”
The average price of virtual land doubled in just six months from $6,000 to $12,000 last year and JPMorgan predicts in-game advertising spending will reach $18.4 billion by 2027.
JPMorgan said: “In time, the virtual real estate market could start seeing services much like in the physical world, including credit, mortgages and rental agreements.”
Despite the metaverse evolving “very quickly,” and it is “difficult to base a business strategy on such a dynamic space,” JPMorgan said the risk of “being left behind is worth the incremental investment needed to get started.”
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