JP Morgan Seeks Business Opportunities in the Metaverse

[TL;DR]

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Business in the Metaverse is an exciting journey ahead. It is an experience that would change the scope of doing business in the future. The ability to connect with your online buyers in a more immersive experience would redefine how e-commerce is right now.

Recently, JP Morgan released a piece on opportunities in the Metaverse. The paper was meant to guide businesses on exploring the Metaverse and navigating the hype around it. This paper was a pointer to the rising importance of Metaverse and virtual reality in today's world. In the extensive discourse, the company also talked about its role and the business opportunities in the Metaverse.


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Since 2021, business opportunities in the Metaverse have become almost unlimited. According to data from JP Morgan, $54 billion is spent yearly buying virtual products in the Metaverse. Currently, NFTs have a market capitalization of $41 billion. These data are based on transactions that take place in the Metaverse only. According to Statista, the market capitalization of web 2.0 metaverse companies is $14.8 Trillion. In another report, the market size of the Metaverse was $46 billion in 2020, billed to rise to $800 billion in 2024.

Before you consider doing business in the Metaverse, you need to know how to enter the Metaverse.

How to Enter the Metaverse

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The whitepaper describes the Metaverse as a "convergence of our physical and digital lives." In another publication by Fortune, the Metaverse is defined as the merging of virtual, augmented, and physical reality. The Metaverse has been evolving since the creation of Second Life in 2003, and today, it is a merger between Web 2.0 and Web 3.0 features.

The Metaverse essentially describes the different virtual worlds that exist. These platforms include Second Life, Roblox, World of Warcraft, Decentraland, The Sandbox, Somnium Space, and Fortnite. While some of these worlds are gaming platforms (Minecraft, Second Life), others are simply virtual reality platforms. Due to the unlimited nature of virtual reality, different organizations are seizing the opportunities to do business in the Metaverse.


According to Mark Zuckerberg, "In the future, instead of just doing this over a phone call, you'll be able to sit as a hologram on my couch, or I'll be able to sit as a hologram on your couch, and it'll feel like we're in the same place, even if we're in different states or hundreds of miles apart." He made this statement in response to the rebranding of Facebook as Meta.

Now, how do you become a citizen of the Metaverse?

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In most web 2.0 and web 3.0 platforms, the means of entry is through a PC or game console. To be immersed in the whole experience, you need virtual reality hardware such as an Occulus VR lens. You also need to register on the mobile platform to become a member of the different virtual worlds. After registering, you should create an in-game avatar or a private key identity on the blockchain. Web 2.0 metaverses rely on more traditional technology such as credit/debit cards for payment infrastructure. However, web 3.0 platforms utilize blockchain technology (crypto wallets) for payment infrastructure. On web 3.0 platforms, NFTs are the means of owning assets, and the database is decentralized.

To set up an account on a platform like the Decentraland, you need to connect your crypto wallet. You then create an avatar and start exploring the Metaverse.

How Will Businesses Use the Metaverse?

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With a market size of over $107 billion projected to hit about $758 billion in 2026 (Globe Newswire), the Metaverse is a turning point for many businesses. However, many companies don't know the possibilities that abound in the Metaverse. For example, Travis Scott held a concert on Fortnite that drew about 45 million people and raised $20 million. This revenue was devoid of expenses on physical logistics like parking space and security arrangements. Sports shoemaker Nike is another business that has enjoyed the possibilities of the Metaverse. After purchasing shoe designer RTFKT, they have created a blend between the physical and digital by selling physical shoes in NFT.

During Meta's (Facebook) event, Connect 2021, they spotlight the different manners in which businesses can utilize the Metaverse. In a post after the event, Facebook shared their insight on the business opportunities in the Metaverse.

• Focusing on the present-day apps is a bridge into tomorrow's Metaverse. They urged business owners to build connections with customers on regular platforms in the post. Metaverse potential is unhinged in the e-commerce sector as it can provide an immersive experience for customers.
• Like Ariana Grande and Travis Scott's concert on Fortnite, metaverses provide a new experience with entertainment. Stakeholders in the entertainment sector can utilize the Metaverse by organizing paid virtual events or physical events where virtual attendance was also an option.
• Businesses in the Metaverse can milk its potential because it enhances the physical world experience. The business can leverage virtual reality to provide a mix of both physical and virtual realities, like real estate agents using AR to give virtual tours to potential clients.

How will J.P Morgan do Business in the Metaverse?

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J.P Morgan is one of the largest banks in the world and has a reputation for being involved in every sector of financing. They offer financial services in almost any form, also being the world's asset and wealth management corporations.

In line with their reputation, they have released a white paper detailing the Metaverse's business opportunities and how they want to do business in the Metaverse. According to the report, their approach facilitates cross-border payments, financial assets creation, trading, and safekeeping in the Metaverse. Their focus in the Metaverse was summary to

- Provide access to digital assets and banking-grade products to game platform providers.
- Make it easier for content and game creators to commercialize their works.
- Provide payment methods and multiple currencies for the global metaverse industry


Conclusively, to achieve their aim, the bank has opened a lounge in the Decentraland. They are the first bank in the metaverse, and high hopes exist for what they will achieve in the Metaverse. Small and big businesses can take a cue from JP Morgan and take advantage of the opportunities present in the Metaverse.



Author：Gate.io Researcher：M. Olatunji
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