'A $1 Trillion Opportunity': JPMorgan Becomes Metaverse's First Big Bank

America's largest bank, JPMorgan, has taken a big step into the metaverse, opening a virtual lounge in the popular blockchain world of Decentraland, after it dubbed the industry a "$1 trillion Opportunity".

Located in the Metajuku mall in Decentraland, the lounge greets visitors with a roaming tiger and a digital likeness of JPMorgan CEO Jamie Dimon. If players go upstairs, they can watch a presentation by an executive on the economics of cryptocurrencies.

JP Morgan’s Metaverse Bank (Source: Decentraland)

The “onyx lounge,” named after JPMorgan’s internal blockchain payments system, was unveiled alongside a report from the bank detailing the kinds of business opportunities businesses can expect to find in the Metaverse.

"The metaverse is likely to penetrate various fields in some way in the coming years, and its market opportunity is estimated to exceed $1 trillion in annual revenue," the report said. At the same time, the report also emphasized that the annual consumption of virtual goods has At $54 billion, it's twice as much as music consumption.

The report noted that the average price of virtual land doubled between June and December last year, from $6,000 to $12,000, and predicted that in-game advertising spending will reach $18.4 billion a year by 2027.

JPMorgan sees the large number of individual creators leveraging Web3 to monetize their work in new ways as the driving force behind the new economy being built in the Metaverse.

"This democratic economy of ownership, combined with the possibility of interoperability, can unlock enormous economic opportunity so that digital goods and services are no longer limited to a single gaming platform or brand."

JPMorgan notes that interest in the Metaverse from major brands is also driving increased mainstream adoption of the Metaverse, such as Adidas and Nike launching NFT-based products and storefronts, and Samsung opening a Metaverse Store, all of which are adoption. great progress in the field.

As if to underline the point, Disney on Tuesday announced the formal appointment of a new executive, Mike White, to lead its foray into the Metaverse. Disney is looking to expand its storytelling capabilities into the digital realm, according to a memo from Disney CEO Bob Chapek. "Today, we have the opportunity to connect these universes and create a whole new paradigm for the way audiences experience and engage with our stories," Chapek said.

It wasn't all positive for JPMorgan's report, though.

In a section titled "Navigating hype vs. reality," the report states that "despite the excitement about the possibilities of the Metaverse, in order to fully exploit its Commercial potential, key areas that need to be further developed and matured.” The report also pointed to deficiencies in the overall user experience, poor performance of avatars, and difficulties in commercial infrastructure.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.