Global Investment bank JPMorgan says, “The metaverse will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenues.” The firm has set up a lounge in Decentraland.
JPMorgan on the Metaverse
Global Investment bank JPMorgan recently published a report titled “Opportunities in the metaverse.” The report is authored by Christine Moy and Adit Gadgil. Moy is the global head of Liink, Crypto & the Metaverse at Onyx by JP Morgan. Gadgil is the head of e-commerce solutions at JP Morgan Payments.
The JPMorgan report details:
The metaverse will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenues.
The report cites research by Grayscale Investments which states: “The metaverse is estimated to be a trillion-dollar revenue opportunity across advertising, social commerce, digital events, hardware, and developer/creator monetization.”
“As a result, we see companies of all shapes and sizes entering the metaverse in different ways, including household names like Walmart, Nike, Gap, Verizon, Hulu, PWC, Adidas, Atari, and others,” the authors wrote.
JPMorgan proceeded to outline its approach to the metaverse. “The success of building and scaling in the metaverse is dependent on having a robust and flexible financial ecosystem that will allow users to seamlessly connect between the physical and virtual worlds,” the authors explained, adding:
Our approach to payments and financial infrastructure will allow that interoperability to grow.
The investment bank has set up an “Onyx by JP Morgan” lounge in Decentraland. The ground floor is an open space with a tiger walking around and a portrait of JPMorgan CEO Jamie Dimon. The lounge is upstairs where there is a big table with documents on it and large monitor screens. You can explore the lounge here.
The JPMorgan report cautions that “The components of the metaverse continue to evolve very quickly,” making it “difficult to base a business strategy on such a dynamic space.”
However, the authors emphasized: “The costs and risks of engaging early and consistently in order to build internal intellectual property, develop hypotheses about future business models, and identify ecosystem partners and collaborators are relatively low.” They elaborated:
The asymmetrical risk of being left behind is worth the incremental investment needed to get started and to explore this new digital landscape for yourself.
Do you agree with JPMorgan about the metaverse? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.