JPMorgan taps into metaverse frenzy, opens Onyx lounge in Decentraland

February 16, 2022 03:10 PM AEDT | By Aditi Saha

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JPMorgan taps into metaverse frenzy, opens Onyx lounge in Decentraland — Image source: © Blacksalmon | Megapixl.com

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Highlights

The largest bank in the US, JPMorgan Chase, has forayed into the metaverse by building an Onyx lounge in Decentraland, a blockchain-based virtual world.

JPMorgan is the first big financial institution to have a virtual presence.

The average price of virtual land surged in 2021, according to the JPMorgan evaluation of “metanomics”.

JPMorgan Chase, the biggest bank in the US, has declared its foray into the metaverse by building an Onyx lounge in Decentraland, a blockchain-based virtual world. JPMorgan is the first big financial institution to have a virtual presence. The Onyx lounge alludes to JPMorgan’s suite of permissioned Ethereum-based services.

A metaverse is a virtual space where individuals may interact with one another. The bank's Onyx lounge resides in Metajuku, which is a virtual version of Tokyo's Harajuku shopping district.

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JPMorgan's foray into virtual real estate coincides with the bank's release of a white paper on opportunities in the metaverse. The financial institution believes the metaverse could eventually generate US$1 trillion in annual revenues. The white paper stated:

The average price of virtual land surged in 2021, according to the JPMorgan evaluation of “metanomics”, which is a portmanteau of metaverse and economics. Across the four main Web 3 metaverse sites: Cryptovoxels, Decentraland, Somnium Space and Sandbox, the average price of virtual land doubled from US$6,000 in June to US$12,000 by December 2021.

It was stated in the JPMorgan report that the performance of avatars and commercial infrastructure needs to be improved in many areas, pointing out the hype versus the reality for the metaverse.

The report further said that decentralised finance (DeFi) collateral management can play a significant role and could be carried out by decentralised autonomous organisations (DAO) rather than traditional finance organisations. DeFi is an emerging digital financial infrastructure. The report added:

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