With its Onyx Lounge in Decentraland, banking giant JPMorgan enters the Metaverse. In Decentraland, institutional investors are putting money into digital real estate.
According to data from four major metaverse sites, the average price of virtual land more than quadrupled from $6,000 to $12,000 in six months last year. The bank expects in-game advertising expenditure to reach $18.4 billion by 2027.
The Wall Street Bank, JPMorgan has Built Decentraland Lounge ‘Onyx’ in Decentraland’s Metaverse
The “Onyx lounge” was launched alongside a bank study explaining metaverse-related development potential for businesses and the reasons for its “explosive interest.”
“When you think about the economics of the metaverse — or metanomics — there are opportunities in almost every market area.”JPMorgan
According to JPMorgan, the Metaverse offers a $1 trillion annual revenue market opportunity as artists use Web 3 to commercialize their work innovatively.
“We are not here to suggest the metaverse, as we know it today, will take over all human interactions, but rather, to explore the many exciting opportunities it presents for consumers and brands alike.”
Users in Decentraland can acquire virtual plots of land in NFTs using money supported by the Ethereum blockchain. On Twitter, many reported their experiences at the Onyx lounge, mentioning a picture of CEO Jamie Dimon and a tiger prowling nearby.
In addition, the business published a report outlining the prospects it is investigating in the Metaverse.
JPMorgan Is The First Bank to Join the Metaverse
According to the paper, J.P. Morgan may function as a bank in the Metaverse in the same way it does in the actual world because the Metaverse’s virtual worlds have their population, GDP, and currencies. It can support cross-border payments, foreign exchange, financial asset creation, trading, and safeguarding in the same way a bank can.
According to the study, J.P. Morgan intends to “play a major role in the metaverse” due to these possibilities. More precisely, the bank will assist with concerns such as account validity, transaction status, and fraud protection; much as it does with real-world clients.
The firm also wishes to assist content producers who want to commercialize their creations in the Metaverse; whether by lending money to finance them or by constructing virtual wallets to receive a commission.
The lounge might provide J.P. Morgan with a foundation in the digital realm.
Decentraland’s Price Rises Due to Increased Institutional Capital Inflows
As Metaverse grows in popularity, individual investors have begun to invest money in Decentraland. Grayscale Decentraland Trust invests entirely in MANA, an investment vehicle for institutions and high-net-worth individuals.
The Trust has invested more than $64.9 million in Decentraland tokens, allowing investors to have exposure to MANA as a security without the hassle of purchasing, maintaining; and safeguarding the token.
In terms of overall volume traded over the last week, Decentraland came in second to Sandbox. However, the top ten most expensive metaverse sales on Decentraland varied from $758,250 to $220,000. Over the last 24 hours, Metaverse’s total transaction volume has been $1.4 billion.
Decentraland’s price has risen by 8.59% in the last 24 hours as capital flows from Bitcoin to MANA.