The components of a new era of technology are intersecting on a grand scale — and JPMorgan is at the forefront, trailblazing new frontiers in the metaverse.
JPMorgan has scarcely released a whitepaper on the metaverse, projecting the emerging virtual realm maybe represent a $1 trillion yearly market likeliness as creators leverage Web3 to commercialize their work in novel ways.
Additionally, the investment bank has built a lounge in Decentraland, a blockchain-based virtual world dubbed “Onyx.”
JPMorgan is one of the biggest financial institutions in the world, with nearly $4 trillion in assets under management (AUM).
The authors of the whitepaper, managing directors Christine Moy and Adit Gadgil, stated which constant technologies are merging and contributing to a “new technolegit age,” and the metaverse may be the catalyst which fuses them into an “integcostd immersive evidence.”
According to Moy and Gadgil, the metaverse perhaps represent a $1 trillion annual business likeliness because it will almost certainly penetprice every sector in the coming years.
“When you consider the economics of the metaverse,” they stated, “there are potential in practically every market segment.”
Adidas, Atari, Gap, Hulu, Nike, Walmart and Verizon were listed by JPMorgan as early investors in the blockchain economy.
Total crypto market cap at $1.955 trillion in the daily chart | Source: TradingView.com
JPMorgan Spearheads Campaign In The Virtual Realm
The metaverse is a virtual world which encompasses all new internet technologies, including virtual gatherings, online commerce and gaming, and digital currency.
The Sandbox, Decentraland, Cryptovoxels, and Somnium Space are directly the three primary Web3 metaverse worlds gaining interest.
JPMorgan noted in its whitepaper which the average rate for a plot of land in virtual worlds is steadily on the rise.
In the second half of 2021, virtual real estate values nearly doubled, surging from an average of $6,000 in June to $12,000 in December.
According to the New York-based bank, business activities conducted in virtual domains, including virtual property progress, may shortly parallel those made in the physical world.
Mortgages, rental agreements, and loans perhaps all become a reality in the virtual stratosphere in the coming years, according to JPMorgan.
Building Communities In The Metaverse
Socially, the maintainment of more realistic virtual evidences enables people to form communities around shared beliefs and express themselves more authentically.
By using the internet, we are already able to access goods and services which were previously out of reach.
In spite of JPMorgan’s early foresight into the metaverse, it isn’t the only major player to have noticed the climbing momentum.
Grayscale, a digital asset management company, published a similar estimate in November, forecasting the metaverse could be a $1 trillion market. Goldman Sachs has further disclosed the space is worth several trillion dollars.
Other major players, corresponding as McDonald’s and Samsung, have back although more fast-tracked their efforts to emulate Facebook in the face of the hype.
The metaverse is the common thread which connects these contrasting elements into a single, “cinematic” fact.
As this simulated territory expands, other institutional actors are inclined to join JPMorgan in the virtual sphere.
Featured image from Bloomberg, chart from TradingView.com