JPMorgan Chase, the world’s largest bank, has entered the metaverse in a big way, opening a virtual lounge in the popular blockchain-based realm Decentraland after declaring the sector a $1-trillion possibility.
In fact, a roaming tiger and a digitised portrait of JPMorgan CEO Jamie Dimon greet visitors to the lounge, which is located in Decentraland’s Metajuku Mall. In addition, players can watch an executive’s presentation on bitcoin economics if they go upstairs.
The Onyx Lounge, which was named after JPMorgan’s in-house blockchain payments system, was introduced alongside a study from the bank outlining the types of business prospects that may be found in the metaverse.
Furthermore, according to the report, “the Metaverse will likely infiltrate every sector in some way in the coming years. With the market opportunity estimated at over $1 trillion in annual revenues”. And that $54 billion is already spent annually on virtual goods, more than twice the amount spent on purchasing music.
According to the poll, the average price of virtual land rose from $6,000 to $12,000 between June and December of last year. And in-game advertising spending predicted to reach $18.4 billion per year by 2027.
Rise of individual producers using Web3
JPMorgan has recognised a rise of individual producers using Web3 to market their work in novel ways. As a key reason behind the new metaverse economy.
“When combined with the possibility of interoperability. This democratic ownership economy has the potential to unlock vast economic opportunities. As digital goods and services no longer tied to a single game platform or brand.”
Significantly, large brands’ interest in the metaverse is pushing mainstream acceptance, according to JPMorgan. Noting Adidas’ and Nike’s attempts to create nonfungible token-based products and shopfronts. As well as Samsung’s opening of a metaverse store.
On the other hand, Disney chose Mike White, a new CEO, to lead the company’s foray into the metaverse on Wednesday morning. As if to emphasise the point. According to a message from Disney CEO Bob Chapek, the company is attempting to expand its narrative capabilities into the digital realm. “We now have the chance to connect those universes. And develop an entirely new paradigm for how people perceive and interact in our stories,” Chapek said.