JPMorgan Chase (JPM) went boldly where no big bank has gone before by staking a claim in the metaverse.
The financial giant opened its Onxy lounge in Decentraland, a 3D virtual world browser-based platform. The lounge is located in Metajuku, a virtual version of Tokyo's Harajuku shopping district.
'They Have a Tiger'
JPMorgan made itself right at home, hanging a picture of CEO Jamie Dimon on the virtual wall. Some users on social media also noted a tiger walking around the meta-premises.
The company's announcement coincided with the release of a report on the metaverse that describes the space as "a seamless convergence of our physical and digital lives, creating a unified, virtual community where we can work, play, relax, transact and socialize."
"We are not here to suggest the metaverse, as we know it today, will take over all human interactions, but rather, to explore the many exciting opportunities it presents for consumers and brands alike," the report said.
The report noted that $54 billion is spent on virtual goods every year, almost double the amount spent buying music, while non-fungible tokens currently have a market capitalization of $41 billion.
'We are Now at an Inflection Point'
Property values are jumping in this new world, with the average price of a parcel of virtual land doubling in a six-month window in 2021 from $6,000 to $12,000.
The growth was partially due to brands buying up space so they can create virtual stores and other experiences, JPMorgan said.
In June 2021, one land package in Decentraland was sold for $913,000, with the developer Every Realm (formerly Republic Realm) turning it into Metajuku, where the bank's Onxy lounge is located.
"We are now at an inflection point, where it seems that not a day goes by without a company or celebrity announcing that they are building a presence in a virtual universe," the report said. "While the buzz can partially be attributed to attention grabbing headlines, there is a convergence of emerging trends."
In addition, the report said, "COVID-19 accelerated the digitization of our lives and normalized more persistent and multi-purpose online engagement and communication."
"It is this combination of technological, social and economic drivers that is resulting in the explosive interest in the metaverse," JPMorgan said.
'Do They Have Money Also?'
The report also considered a changing workplace as supply and demand dynamics "are driving more people into the meta-economy."
"This, in turn, will necessitate the development of new skills and generate new opportunities to make money," the study said.
Some of the comments on social media about the bank's metaverse adventure were less than charitable.
"Love how the meta verse looks like something out of Wii sports from like 2006," one person tweeted.
"Surprise," another said. "The tiger is actually Jamie Dimon."
"They have tiger!!wow!!," another person declared. "Do they have money also?"
And a few commenters had harsh words for Dimon, recalling his earlier statements about bitcoin, which he said in November had "no intrinsic value."
"When the biggest trasher becomes an ally," a person said on Twitter, "it really shows the potential and value of cryptos and defi space."
"First bank to also publicly come out trashing Bitcoin now in the bubbliest bubble (metaverse)," another tweeted.
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