JPMorgan Joins The Metaverse With Its Own Lounge

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JPMorgan Chase & Co. made a significant step into the metaverse on Tuesday, launching a digital lounge in the famed blockchain-based realm of Decentraland.

Along with the opening of the “Onyx lounge,” the bank released a paper explaining the prospects for companies to thrive in the metaverse and the factors that have fueled the “explosive interest” in it. Creators are using Web3 to commercialize their opportunities in different ways, according to JPMorgan, creating a market potential worth $1 trillion in annual income in the metaverse.

”The elements of a new digital age are converging at scale. The metaverse is the driving force bringing these elements together in a unified, immersive experience,” reads the report.

According to statistics from four leading metaverse sites, the average cost of digital land has more than quadrupled in the previous six months, rising from $6,000 to $12,000 in only six months. It is predicted that in-game advertising expenditure would reach $18.4 billion by 2027, according to the bank.

Despite the fact that the metaverse is evolving at a breakneck speed and that it is difficult to develop a business plan in such a dynamic environment, JPMorgan believes that the danger of remaining left behind is worth the little initial expenditure required to get involved.

Morgan Stanley and the metaverse

The decision by JPMorgan follows a similar one made by Morgan Stanley to its customers earlier this month. As the metaverse substitutes the mobile internet with a much more immersive environment, experts at the bank believe that the first Chinese total addressable market (TAM) will be around $4 trillion.

When you consider the economy of the metaverse — also known as metanomics — according to the bank, there is potential in practically every market segment. However, they do not propose that the metaverse, as we understand it now, will take over all interactions between people, but rather that they will investigate the numerous fascinating prospects it brings for both consumers and marketers.