JPMorgan has become the first lender to enter the metaverse, having opened a lounge in Decentraland, a virtual world based on blockchain technology.
Within Decentraland, users can buy virtual plots of land in the form of NFTs and make purchases using cryptocurrency backed by the Ethereum blockchain.
The company also wants to serve content creators who plan on commercializing their creations within the metaverse, whether its lending money to finance them or establishing virtual wallets for them to collect commission.
“There is a lot of client interest to learn more about the metaverse,” Christine Moy, JPMorgan’s head of crypto and the metaverse, said .
“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.”
The metaverse, JPMorgan said, has a market opportunity of $1 trillion in yearly revenue, as creators tap Web3 to monetize their work in new ways.
“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,”
In addition to the unveiling of the Onyx lounge, JPMorgan released a paper exploring how businesses can find opportunities in the metaverse. The JPMorgan paper attempts to illustrate the metaverse hype versus the reality, stating that many areas need to improve.
These include the overall user experience and performance of avatars, as well as commercial infrastructure.
“We believe 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,”
“This is where our long-standing core competencies in cross-border payments, foreign exchange, financial assets creation, trading and safekeeping, in addition to our at-scale consumer foothold, can play a major role in the metaverse.”