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JPMorgan Takes Leap into Metaverse

UTC by Ibukun Ogundare · 3 min read
JPMorgan Takes Leap into Metaverse
Photo: Shutterstock

JPMorgan analysts predict the metaverse’s initial addressable market in China will be roughly $4 trillion, as it replaces the mobile internet with a more immersive experience.

New York-based multinational bank holding company JPMorgan (NYSE: JPM) has joined the list of companies in the metaverse. Meanwhile, the investment banking company also becomes the first bank to debut into the metaverse. It achieved this by opening a lounge called “The Onyx” in Decentraland (MANA).

The Onyx lounge guests are welcomed by a roaring tiger and a digital portrait of JPMorgan CEO Jamie Dimon. The lounge’s name is after JPMorgan’s in-house blockchain payments system.

A report by the JPMorgan bank says:

“The metaverse will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenue.”

The report further states that $54 billion is converted to the purchase of virtual products yearly and predicts that in-game advertising will reach $18.4 billion per annum by 2027. However, the report has its downside. It read that “despite much excitement about the possibilities of the metaverse, in order to enable its full potential for engagement, community building, self-expression and commerce, key areas need to be further developed and matured.”

JPMorgan and More Businesses Explore the Metaverse

The head of crypto and metaverse at JPMorgan Christine Moy spoke about the latest development in an email. She said the institution had put together its whitepaper to help clients understand the “current reality” with the trending technology. The executive added that the whitepaper explains the next development to expect in technology, “commercial infrastructure, privacy/identity, and workforce, in order to maximize the full potential of our lives in the metaverse.”

Although, it is safe to say that the broad acceptance of NFTs will affect that of metaverse positively.

JPMorgan, adopting the metaverse, will be of interest to high-end brands like Nike &Adidas. The bank wrote:

“When you think about the economics of the metaverse or metanomics- there are opportunities in almost every market area” We are not here to suggest the metaverse…but rather to explore the many exciting opportunities it presents for consumers and brands alike.”

Household names like Verizon (NYSE: VZ) and Walmart (NYSE: WMT), are ardent investors in the blockchain economy. The likes of Hulu, Gap (NYSE: GPS), and Atari are also investors.

JPMorgan analysts predict the metaverse’s initial addressable market in China will be roughly $4 trillion, as it replaces the mobile internet with a more immersive experience. The analysts expect the metaverse (TAM) to go beyond the e-commerce dominated online consumption market. They added that after the sector was labeled a $1 trillion opportunity.

With Nike’s recent acquisition of RTFKT studios, the transition into the metaverse will be profitable. In November, Barbados established a metaverse embassy in Decentraland. With these significant entries into the metaverse, JPMorgan would not risk being left behind on the rapid-expanding technology.

Business News, News, Technology News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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