Global banking is playing steady in opening up banking services in the metaverse. JP Morgan emerged as the first bank to open a waiting room in Decentraland's blockchain-based virtual world last Tuesday.
In this virtual space, customers can buy virtual plots of land with non-exchangeable tokens, or NFTs. In addition, you can make other purchases using cryptocurrencies citing Euronews on Friday (18/3).
Before customers reach the virtual lounge called Onyx Lounge, customers will be greeted by a tiger and the avatar of JP Morgan CEO Jamie Dimon.
Metaverse is likely to infiltrate every sector in some way in the coming years, with market opportunities estimated at over US$1 trillion in annual revenue.
"We will play a major role in the metaverse and can help address issues in cyberspace that are currently being addressed in real life. Such as validating accounts and fraud prevention," said JP Morgan's management.
Interest in the metaverse spiked last October after Facebook announced it was changing its name to Meta to reflect its focus on the virtual world. Now in this virtual world, users will be able to work and socialize.
The Metaverse, which already exists primarily in games, can provide massive advertising potential, which companies like Nike are already trying to exploit with their NFT-based products and storefronts.
The JP Morgan report also notes that between June and December last year, the average price of virtual land doubled from $6,000 to $12,000. It also predicts that in-game advertising spending will reach US$18.4 billion per year by 2027.
“This democratic ownership economy, coupled with the possibility of interoperability, could open up enormous economic opportunities, where digital goods and services are no longer tied to a single gaming platform or brand,” the report said.
Not to be missed, HSBC has also purchased a plot of virtual real estate in an online gaming space called The Sandbox for an undisclosed amount. This is the bank's move into the metaverse as it shrinks its UK branch network.
The digital push will allow HSBC to engage with sports, e-sports and gaming fans through its territory in The Sandbox, a virtual space majority owned by Hong Kong-based Animoca Brands.
His venture into cyberspace comes as the UK-based lender is trimming its footprint in the real world, announcing on Tuesday it will cut 69 more branches in the UK as its customers move online.
HSBC is the second global bank to invest in the popular metaverse platform after JPMorgan. Users in metaverse environments like Animoca's The Sandbox can buy land, travel as avatars, play games, and meet friends.
HSBC hopes to create innovative brand experiences for new and existing customers, online.
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