Bank in the Metaverse: JPMorgan Stock: JPMorgan Opens a Branch of the Bank in the Metaverse in Decentraland | newsletter

• Hardly a day goes by without a well-known company announcing that it will move to the Metaverse
• Customer advice in the virtual parallel world Decentraland
• The hype around the Metaverse is reflected in the prices

JPMorgan became the first bank to acquire a plot of land in Decentraland, one of the most famous central areas, and opened the Onyx lounge. JPMorgan subsidiary Onyx, which is responsible for developing blockchain projects and its own digital currency, JPM Coin, gave the lounge its name. It is located in Metajuku, a virtual version of the Harajuku shopping district in Tokyo. YouTube videos allow a virtual tour of the lounge: there you’ll encounter a tiger in the entrance area and pose in front of the digital photo of JPMorgan CEO Jamie Dimon. In the upper area of ​​the Onyx Lounge, one can then follow presentations on cryptocurrencies by executives at JPMorgan. In the future, the US bank giant also wants to offer banking services such as credit and lease agreements in the parallel world in a virtual bank branch.

Opportunities in the Metaverse

In the strategy paper “Opportunities in the Metaverse,” JPMorgan emphasizes the importance of the Metaverse to all sectors of the economy and its $1 trillion sales potential. With Decentraland, the major US bank is based on a platform built on the Ethereum blockchain, which is very advanced compared to its competitors. Unlike current parallel worlds, such as Second Life from 2010, almost everything in Decentraland is Non-Fungible Token (NFT). The pieces and art on the walls of virtual galleries can be purchased in the form of NFTs. In this way, users gain both tradable NFTs and shared decision rights and can have a say in the design of the virtual world. Payment is made in Decentraland’s cryptocurrency, MANA. The MANA token, like the entire crypto market, has developed strongly favorably and the value has doubled. In the current ranking by market capitalization, Decentraland ranks 37th with a value of $3,415 billion (as of March 15, 2022).
Not a day goes by without a major company announcing it is moving to the Metaverse, and the introduction to the JPMorgan report reads as an argument for Metaverse strategy and as evidence of Metaverse’s overall acceptance. Samsung, for example, has opened a virtual version of its New York flagship store in Decentraland with the Samsung 837X. Well-known brands such as sporting goods maker Adidas have virtual branches in worlds other than the Metaverse and sell their real-world equivalents there.
The hype surrounding the Metaverse is also reflected in the prices: while virtual real estate in Decentraland cost $20 when it started in beta, prices for digital real estate have exploded in the past two years. With the NFT boom, land prices doubled from $6,000 to $12,000 in 6 months in 2021, according to a JPMorgan report. The boom peaked in the last quarter of 2021 right now, with Facebook announcing it’s rebranding itself as Meta and focusing on building the metaverse.

The future with the need for improvement

In their paper on the capabilities of the Metaverse, US bankers critically understand the completely underdeveloped technical and infrastructure environment in Decentraland and compare the hype with reality. The user experience and commercial infrastructure must be greatly improved in order to make the metaverse more attractive. In addition, the key areas of engagement, community building, self-expression, and commerce are not mature enough for companies and investors to work together in a vibrant ecosystem. The report concludes that it remains elated: a major US bank can reach Metaverse users in their core areas of expertise, cross-border payment transactions, forex trading and financial investments, on a different level. JPMorgan constantly strives to innovate and improve the regulation of financial transactions on the decentralized web.

finanzen.net editorial office

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