JPMorgan Ventures Into the Metaverse, Buys Land on Decentraland
The largest bank in the U.S. is venturing into the metaverse. JPMorgan is the first U.S. bank to purchase land in the metaverse to launch its financial suite.
The largest bank in the U.S. is venturing into the metaverse. JPMorgan is the first and largest U.S. bank to invest in the metaverse. JPMorgan purchased digital land in Decentraland. Following the announcement, the MANA token has increased by over 10 percent. What exactly does JPMorgan intend to build in the metaverse?
According to reports, JPMorgan will be building out a lounge in the metaverse for a permissioned Ethereum-based service.
What is the JPMorgan "Onyx" lounge?
The "Onyx" lounge is based on JPMorgan's already existing suite that facilitates Ethereum-based services. The bank fully intends to explore the possibilities of operating in the metaverse and has also written a paper explaining the methods businesses can take to be operational in the digital world.
JPMorgan made the move after realizing that it can operate as a bank in the metaverse, similarly to the real world, with the capabilities to process cross-border payments, foreign exchanges, financial asset creation, and trading.
The bank is confident that its in-real-world utility will transfer seamlessly in the metaverse with its population/users, currencies, and GDP.
Where is the Onyx lounge located?
The bank purchased a parcel of land in Decentraland for an undisclosed amount, but the suite will be located in the virtual version of Tokyo's Harajuku shopping district, Metajuku mall.
Users have commented on Twitter that when entering the Onyx lounge, users are greeted by a roaming tiger and a digital picture of the bank's CEO, Jamie Dimon.
How will JPMorgan's Onyx lounge work in the metaverse?
The lounge intends to attract users and act as a financial intermediary, which is the opposite purpose of blockchain where an intermediary isn't necessary.
JPMorgan acknowledged in the report that we're at an "inflection point." With each passing day, a new entity is aligning itself with Web 3.0. The bank also acknowledges the metaverse's financial opportunities and calls it "metanomics" or economics of the metaverse.
JPMorgan realizes that users are naturally gravitating towards the meta-economy and sees it being built out on a "gaming infrastructure." The report highlights the potential financial benefits of investing in the metaverse. According to projections, in-game ad spending could reach $18.41 billion by 2027.
CEO Jamie Dimon doesn't use the word "cryptocurrency" anymore.
Although JPMorgan is making headlines as being the first bank to cement itself in the metaverse, the move doesn't necessarily align with its CEO's overall sentiments of web3. In the past, CEO Jamie Dimon has been found expressing his skepticism of crypto and even called Bitcoin "a little bit of Fool's Gold."
Changing the beat of his tune, Dimon finds it easier to remove the word "cryptocurrencies" from his vernacular. In an interview with Ekathimerini, a Greek news outlet, Dimon expressed his contempt towards the word and said that "...currencies have rules of law behind them, central banks and tax authorities," instead he refers to them as "Crypto-tokens."
Despite Dimon stating that crypto was "worthless" at the height of the crypto boom back in October 2021, the bank is making its move. JPMorgan realized the whopping economic benefit that comes with crypto.