JP Morgan Becomes First Bank in the Metaverse

In the past few months, we have seen the size of the metaverse explode in size. In fact, the top two metaverse platforms - Decentraland and The Sanbox - are adding millions of new users each month. Not only that, we are seeing lots of brands establish themselves in the metaverse. Perhaps the biggest surprise is that mega bank JP Morgan has also decided to jump headfirst into the world of web 3.0. Here, we will take a look at why JP Morgan is moving into the metaverse and what does this mean for the future of the company?

Why This is a Big Deal While we have seen lots of brands come into the metaverse, it is surprising to see a large, conservative bank join such a new platform. After all, this is the same bank who once said that Bitcoin was worthless. To see such a conservative bank make such a drastic move means that the bank sees some incredible opportunity in the metaverse.

A $1 Trillion A Year Potential? How big can the metaverse be? According to JP Morgan’s own research, the entire metaverse market has the potential to be a $1 trillion dollar market. For reference, the entire US gross domestic project is $25 trillion. That means that the metaverse, something which did not exist five years ago, can be worth 2.5% of the US GDP per year.

The JP Morgan Metaverse Lounge You may be wondering what exactly a large bank looks like in the metaverse. Well, right now, JP Morgan is taking things slowly. The bank has opened a simple lounge which features some lessons on cryptocurrency. It is clear that the bank is still trying to “figure out” the best way to use the metaverse to build its brand. Right now, it appears that JP Morgan is simply trying to gain a foothold in the new space.

What can JP Morgan Gain from a Move Into the Metaverse? So what exactly does JP Morgan have to gain from a move into the metaverse? Well, we still don’t know the entire potential of it since the metaverse is still extremely young. However, there are three immediate benefits that JP Morgan can gain from being an early adopter.

1). Targeting younger affluent audiences

As a bank, JP Morgan wants to capture as much of the affluent audience as possible. So where do the young affluent hang out? It appears that many of these well heeled potential customers are moving into the metaverse. This is JP Morgan to freshman up their image and capture this potential market by being more visible in the metaverse. Of course, this could have the potential to backfire spectacularly if the bank is not able to present itself properly.

2). Capture virtual real estate

3). Better positioned for metaverse deals

What Can We Take Away from JP Morgan’s Move Into the Metaverse Looking at JP Morgan’s move into the metaverse, we can draw some conclusions about both the bank and the metaverse as a whole.

1). The metaverse is adopting faster than crypto

What we are seeing right now in the metaverse is incredible in terms of growth and adoption. The earliest incarnations of the metaverse really only go back five years. Think about where crypto was five years into its existence. Back in 2014, many people didn’t even know cryptocurrency existed and certainly no bank wanted anything to do with the digital currency. Contrast that with the metaverse where hundreds of brands have already established a presence. It would not be surprising to see more banks and other brands come into the metaverse over the next 12 months.

2). All types of businesses will be in the metaverse

3). There will be serious money poured into the metaverse

4). The metaverse is not a fad

The future of banks and financial institutions in the metaverse JP Morgan may be the first of many financial institutions to join the metaverse. It will be interesting to see which banks will come next and what they will have to offer.

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