JPMorgan also purchased a digital block of land in Decentraland’s Metaverse.
JPMorgan has released a report on the Metaverse, claiming that the emerging virtual realm might be worth $1 trillion per year. In Decentraland, the investment bank has also opened a lounge.
JPMorgan Jumps Into the Metaverse
JPMorgan has begun to explore the Metaverse.
Managing directors Christine Moy and Adit Gadgil of the American investment bank have produced a report titled “Opportunities in the Metaverse: How Businesses Can Explore the Metaverse and Navigate the Hype vs. Reality” in which they lay out a possible future for the Metaverse. They said that the Metaverse might be a $1 trillion business potential in the future years since “it will likely penetrate every sector in some form.”
Multiple technologies are converging and contributing to a “new digital era,” according to the authors, and the Metaverse might be the force that provides “a cohesive immersive experience” for them.
They also gave data to show the scope of the Metaverse’s potential growth. According to the article, $54 billion is spent annually on virtual products, and the Metaverse-focused game The Sandbox has already signed 200 strategic collaborations with companies like Warner Music Group. The NFT market, which is presently valued at $41 billion, was also mentioned.
The report also stressed the Metaverse’s ability to influence social interactions, which they claimed might be digitally developed and extended. It also traced the history of the Metaverse, mentioning games like World of Warcraft, Fortnite, and Minecraft, as well as more recent developments like Facebook’s rebranding to Meta and Microsoft’s $68.7 billion acquisition of Activision Blizzard.
It also stated that technologies such as augmented reality, virtual reality, and blockchain could help to create a new vision for the Metaverse, and that the “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 single gaming platform or brand,” according to the report.
The concept of a “democratic ownership economy” is one of Web3’s basic ideas, and it is projected to play a significant role in the Metaverse. Many Metaverse initiatives, such as Decentraland and Axie Infinity, have their own coins to reward users.
While the report expressed optimism for the Metaverse’s future, it also stated that more work is needed in areas such as commercial infrastructure, regulation, taxes, and user privacy. JPMorgan has also built a lounge in Decentraland’s Metaverse in conjunction with the report, making it the first bank to do so.
While JPMorgan was one of the first to see the Metaverse’s potential, it isn’t the only major entity to have observed the space’s growing popularity. Grayscale, a digital asset management company, published a paper in November projecting that the Metaverse may be worth $1 trillion, while Goldman Sachs has set a multi-trillion dollar objective for the field. In the midst of the frenzy, major corporations such as Adidas, Samsung, and McDonald’s have hurried to follow Facebook’s lead. Other institutional players are likely to join JPMorgan in the virtual sphere as the Metaverse evolves.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.