JP Morgan reveals metaverse strategy

JP Morgan has outlined its metaverse strategy in a new paper.

The investment bank said it is building and scaling technologies including but not limited to tokenisation and digital identity.

JP Morgan said that “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” and that its “payments and financial infrastructure will allow that interoperability to grow”.

The virtual gaming landscape - which has its own population, GDP, in-game currency, and digital assets - “has elements that parallel the existing global economy”, according to the investment bank.

JP Morgan said its existing competencies in cross border payments, foreign exchange, financial assets creation, trading and safekeeping, and its existing consumer foothold, “can play a major role in the metaverse”.

The investment bank said its gaming ecosystem projects will focus on three areas:

• Industrialising game platform providers with bank-grade products and digital assets platform access
• Enabling game and content creators to commercialise their creations more easily
• Scaling the metaverse industry worldwide across multiple currencies and payment methods

“The component parts of the metaverse continue to evolve very quickly,” said a JP Morgan spokesperson. “It is difficult to base a business strategy on such a dynamic space, characterised by explosive growth and the continuous innovation of new entrants.

“However, 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 added: “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”.

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