JP Morgan & Decentraland: A Metaverse Marriage.

JP Morgan is delving into the Metaverse by opening a virtual lounge. What should we expect?

Experts regard the Metaverse and Web3 as the future of the Internet.

The Metaverse helps launch and power apps to merge the real-life experience with the virtual world.

In achieving this experience, JP Morgan, a financial institution, decided to embrace Metaverse technology.

JP Morgan embraced Metaverse by setting up a Virtual space and lounge in Decentraland.

JP Morgan is a giant in the financial sector worldwide, and it is the fifth-largest bank in the United States.

Decentraland runs on Ethereum and helps blockchain developers to create decentralized virtual experiences.

Decentraland is governed by the Decentralized Autonomous Organization (DAO) consensus.

JP Morgan Chase's partnership with Decentraland is to prioritize its account holders, enable them to perform transactions on a decentralized space, and give them a virtual experience.

The latest trend that cuts across all sectors and industries is to see big brands, businesses, and organizations breaking into the Metaverse.

The Metaverse and Web3 are regarded as the future of the Internet. Therefore, no one wants to be left behind in embracing this innovation.

Recently, the financial sector recorded massive success in embracing the Metaverse technology when the Largest Bank in the United States entered the Metaverse.

JP Morgan became the first bank to set up its virtual shop in Metaverse. This financial institution launched a lounge in Decentraland, a blockchain-based virtual world.

Moving forward, we shall be identifying the strides of JP Morgan as a financial institution, its plans and activities in joining the Metaverse, and the details about the Decentraland Virtual World.

Let's get started!

JP Morgan As A Financial Institution.

JP Morgan Chase & Co. is a multinational financial institution that offers investment and banking services.

JP Morgan was founded by Aaron Burr, Balthazar Melick, JP Morgan, and John Thompson in December 2000.

JP Morgan Chase has its headquarters in New York and was incorporated in Delaware.

As of 2021, JP Morgan Chase had a total asset of $3.831 trillion, making it the fifth-largest bank globally.

JP Morgan Chase is a multinational financial service company with divisions in Asset and Wealth Management, Consumer and Community Banking, Commercial Banking, and Corporate and Investment Banking.

JP Morgan is the largest bank in the United States and the largest globally based on Market Capitalization.

What Is Decentraland?

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Decentraland is a virtual reality infrastructure powered by the Ethereum blockchain.

Decentraland runs on Ethereum, and it seeks to explore a global network of blockchain users to operate a decentralized virtual world.

In 2017, Decentraland held an initial coin offering (ICO) and raised 86,206 Ether, worth about $26 million.

Decentraland started with allowing users to transact digital real estate while exploring the digital world. You can interact and play games within the virtual world.

Decentraland has evolved to include interactive apps, peer-to-peer communication, and in-world payments to consolidate on that.

Decentraland is governed by the Decentralised Autonomous Organization (DAO). The management is centralized and in the hands of users.
MANA and LAND are digital tokens governed by Decentraland.

At this juncture, let's analyze the plans of JP Morgan to test and Launch its virtual platform on Decentraland.

JP Morgan Chase And Decentraland

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JP Morgan Chase became the first financial institution to set up a virtual lounge. The plan is to have a digital branch and become a significant shareholder in Metaverse.

JP Morgan announced that the plan is not to substitute human interaction with Metaverse but to explore the numerous exciting opportunities in Metaverse.

The partnership between JP Morgan and Decentraland Metaverse will see the launch of “Onyx Lounge.”

Onyx Lounge is a virtual bank in the Metaverse. It was set up as a decentralized platform on Decentraland and is expected to operate as a bank.

There are expectations that the community will grow and give the members a feeling of immersive virtual experiences.

Decentralized is the (parent platform) where the virtual bank will be launched. The partnership will enable JP Morgan account holders to play and earn & create to earn on a single decentralized platform.

How Does Decentraland Work?

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Decentraland runs on a software application, and it was built to track real estate parcels using LAND tokens.

Decentraland leverages Ethereum Blockchain in tracking the virtual world land ownership. To become a Decentraland user, you need to hold a MANA token in your Ethereum wallet.

Decentraland is decentralized and is flexible for blockchain developers to design and bring their plans to life. You can develop your animation idea and the expected interaction on virtual real estate.

Asides from the gaming world, Decentraland works in a Marketplace. The Marketplace is a virtual world for participants to manage and exchange LAND tokens, and the blockchain transaction is priced in MANA.

All transactions on Decentraland leverage the Ethereum wallet and the transactions are verified by Ethereum and logged on the Ethereum blockchain.

Decentraland has an emphasis on Land and landed space in the virtual world. However, creators can create content and applications and monetize them on this blockchain platform.

Conclusion

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The exponential rate of financial institutions embracing the Metaverse and Web3 is alarming. Several financial institutions like HSBC and Accenture have various plans to become stakeholders in Metaverse.

JP Morgan cited several reasons for delving into the Metaverse. Top of the reasons was to allow its holders to have the virtual world experience and connect from different locations.

In addition, the Coronavirus (Covid 19) pandemic necessitated the need to adopt a decentralized digital platform.

The partnership with Decentraland will help actualize a virtual banking system launch and make the stakeholders the management.



Author: Valentine. A, Gate.io Researcher
This article represents only the researcher's views and does not constitute any investment suggestions.
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