JPMorgan Chase is the first bank to join the metaverse, a blockchain-based virtual world, according to news reports. There’s a lot of client interest in learning about the metaverse, and JPMorgan is working to draw attention to what must be done next in terms of technology, commercial infrastructure, privacy/identity, and workforce to optimize our lives in the metaverse.

 

This virtual world is intriguing for the industry of banking because it is based on blockchain technology, cryptocurrencies, and decentralized finance (DeFi). They provide a wealth of new possibilities. Virtual real estate, for example, is one area where we may begin to see banks and credit unions provide services similar to those in the actual world, including bank accounts, credit cards, mortgages, and loans.

 

Ignoring the metaverse and DeFi’s potential may be costly for financial institutions in terms of lost profit. This doesn’t apply just to banks though. Samsung has also established a Decentraland store in January, and Barbados has established a metaverse embassy.  Given the opportunity, it’s fascinating to visit JPMorgan’s lounge, Onyx, which was created also on Decentraland. It’s basically a virtual platform where users can purchase or sell digital property, play games, trade collectibles, socialize, communicate and explore. Visitors are greeted by a digital portrait of the CEO, Jamie Dimon and a roaming tiger.

Steps to join and trade in this virtual world

 

To begin, you must create a Decentraland account, which is simple. However, to get started, you’ll need a crypto wallet. You could use MetaMask, one of the accepted wallets in this metaverse. JPMorgan launched the Onyx lounge and a white paper outlining how enterprises may capitalize on the metaverse.

 

According to the company, the average price of virtual real estate on the four most prominent Web 3 metaverse sites increased from $6,000 to $12,000. It was suggested that decentralized finance (DeFi) and collateral management might be used in place of traditional financial institutions (DAO).

 

There are still areas that need to be addressed. The overall user experience, avatar performance, and commercial infrastructure are areas that will need improvements in the future.