J.P. Morgan ventures into the Metaverse

The world's most valuable bank by market value has opened a virtual lounge in the popular blockchain-based world of Decentraland, declaring it a "$1 trillion opportunity."

J.P. Morgan ventures into the Metaverse

JPMorgan Chase, the world's most valuable bank by market value, has opened a virtual lounge in the popular blockchain-based world of Decentraland, declaring it a "$1 trillion opportunity."

JPMorgan CEO Jamie Dimon is featured in a digital portrait in the lounge, located in Decentraland's Metajuku mall.

A presentation on crypto's economics can be viewed if players go upstairs.

As part of the launch of the Onyx lounge, a report was revealed by J.P. Morgan detailing what types of business opportunities companies can expect to find in the Metaverse. The Onyx lounge is named after the bank's blockchain payment system.

The report states that "The Metaverse is likely to impact every industry in some way in the coming years, with a market opportunity estimated at over $1 trillion in annual revenue," while also noting that $54 billion is already being spent on virtual goods–twice what is spent on music each year.

During the period from June to December last year, the average price of virtual land doubled from $6,000 to $12,000, and in-game advertising spending is predicted to reach $18.4 billion yearly by 2027.

The new economy being built in the Metaverse has been driven by a surge of individual creators using Web3 to monetize their work in new ways.

"This democratic ownership economy, coupled with interoperability, could tremendously boost the economy since digital goods and services would no longer be confined to a singular gaming platform or brand."

J.P. Morgan cites Adidas and Nike as examples of massive brands driving mainstream adoption of the Metaverse, citing their NFT-based products and storefronts as well as Samsung's Metaverse store opening as huge steps forward.

To bring the point home, Disney announced recently that it has named Mike White as the new executive to oversee its efforts in the Metaverse.

Walt Disney is working on expanding its storytelling skills to the digital realm, according to a memo by CEO Bob Chapek.

"We have the opportunity to connect those universes and create a whole new paradigm for engaging audiences," Chapek said.

As part of the section titled "Navigating hype vs. reality," the report stated, "despite much excitement about the possibilities of the Metaverse, it is crucial that certain key areas are further developed and matured in order to realize its full potential as an engagement tool, community builder, self-expression tool and commerce tool." The authors note the shortcomings in the overall user experience and poor performance of avatars.