A branch of JP Morgan has opened in... metaverse

JPMorgan, the nation's largest bank, has become the first financial institution to enter the metaverse, launching its first "branch" in Decentraland, a blockchain-based virtual world.

JPMorgan has released a paper on how businesses can find opportunities in the metaverse, in addition to revealing the Onyx lounge.

Christine Moi, JPMorgan's head of encryption and metaverse, said, "There is a lot of interest from our customers to learn more about metaverse,"

Samsung opened a New York store in Decentraland in January, and Barbados established a metaverse embassy in Decentraland in November.

On the four major Web 3 metaverse sites: Decentraland, The Spacebox, and Cryptovoxels, JPMorgan began investigating the metaverse, noting that the average price of a virtual plot of land doubled in the second half of 2021, from $ 6,000 in June to $ 12,000 in December.

"Over time, the virtual real estate market could begin to see services as in the physical world, including credit agreements, mortgages and rentals," according to the JPMorgan report. He went on to say that decentralized financing guarantees (DeFi) could be managed by decentralized autonomous organizations rather than traditional financing companies (DAOs).

According to the report, working in the metaverse will be lucrative, citing a number of entertainment providers as well as applications such as RTFKT, a virtual shoe designer recently acquired by Nike. Another significant expenditure will most likely be advertising, according to the bank, which estimates that in-game advertising spending will reach $ 18.41 billion by 2027.

By fLEXI tEAM