Yahoo Finance First major bank enters the metaverse
Visitors to Decentraland, a shared virtual world running on the Ethereum blockchain, will be able to visit JP Morgan’s “onyx lounge” in the Metajuku mall.
In the bank’s virtual lounge, which was named after Onyx, the bank’s blockchain unit, users will be able to buy virtual plots of land with non-fungible tokens (NFTs) and buy other goods with cryptocurrency.
And read: Explainer-What is the "metaverse"?
And read: Republic's metaverse real estate arm spins off, rebrands as Everyrealm
JP Morgan reportedly rolls out the royal treatment to its visitors by welcoming them with a digital portrait of its head honcho Jamie Dimon and a roaming tiger.
The bank has also released a report on the emerging virtual world ecosystem and expects it to grow into a $1 trillion business opportunity.
Why would we need traditional banks in the metaverse?
While recognising that the metaverse is still in its infancy, the bank sees economic opportunities in every pixelated corner of the virtual universe.
“Imagine you have an online avatar and you want to change what it/you are wearing, you will be able to buy limited-edition, digitally branded clothing that you pick after browsing a virtual showroom,” the report said.
“Or you may start your own small business, such as an art gallery where you display your latest and greatest collections, or a virtual private club.”
The bank predicts strong links between the physical and virtual world and has suggested the success of the metaverse “is dependent on having a robust and flexible financial ecosystem”.
“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.”
It has flagged a few areas to concentrate on, including scaling the metaverse across multiple currencies and payment methods.
Other companies in the metaverse
The line between the real world and the virtual world is already getting blurry. Fast food giant McDonalds, for example, has floated the idea of ordering a burger in a virtual restaurant and having it delivered to you in real life.
Panera Bread also recently filed trademark applications to secure its place in the digital universe, as have companies such as sports brand Nike and US retail giant Walmart.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.
