JPMorgan Chase becomes the first bank to enter the Metaverse

The Wall Street bank has created a lounge in Decentraland, a blockchain-based community.

The Wall Street bank has created a lounge in Decentraland, a blockchain-based community.
JPMorgan joins the Metaverse world

JPMorgan, US largest bank, announced that it has created a lounge in Decentraland, a virtual world based on blockchain technology, making it the first lender to enter the metaverse.

JPMorgan also released a study analyzing how businesses might identify opportunities in the metaverse, in addition to the launch of the Onyx lounge.

In an email, Christine Moy, JPMorgan's head of crypto and the metaverse, stated,

"There is a lot of client enthusiasm to understand more about the metaverse. In order to leverage the full potential of our lives in the metaverse, we put together our white paper to help clients break through the noise and highlight what the current reality is, as well as what needs to be constructed next in technology, commercial infrastructure, privacy/identity, and workforce."

With the general acceptance of non-fungible tokens (NFT), the metaverse, a catch-all for immersive gaming, world-building, and entertainment, has experienced a frantic surge in the past year, fuelled by integrated commercial applications.

Samsung opened a Decentraland counterpart of its New York shop in January, and Barbados established a metaverse embassy, also in Decentraland, in November.

JPMorgan starts its analysis of "metanomics" by noting that the average price of a virtual plot of land doubled in the second half of 2021, rising from $6,000 in June to $12,000 in December across the four major Web 3 metaverse sites: Decentraland, The Sandbox, Somnium Space, and Cryptovoxels.

According to the JPMorgan analysis, "in time, the virtual real estate market might see services similar to those found in the physical world," such as credit, mortgages, and rental agreements.

It went on to say that decentralized finance (DeFi) collateral management might play a role, and that this could be handled by decentralized autonomous organizations rather than traditional finance businesses (DAO).