On Monday (April 4), JPMorgan Chase Chairman and CEO Jamie Dimon talked about blockchain technology and decentralized finance (DeFi) in his company’s latest annual Letter to Shareholders.
In section “Investments and Acquisitions: Determining the Best Use of Capital and Assessing ROIs” of this report , he stated:
“ We now process payments for eight of the top 10 global Big Tech companies (up from three out of 10 companies five years ago), consistently winning business from strong competitors. We continue to bring to the market and commercialize innovative products, such as embedded banking; AI-driven fraud controls and forecasting; and account validation and programmable payments on JPM Coin.
“ Decentralized finance and blockchain are real, new technologies that can be deployed in both public and private fashion, permissioned or not. JPMorgan Chase is at the forefront of this innovation. We use a blockchain network called Liink to enable banks to share complex information, and we also use a blockchain to move tokenized U.S. dollar deposits with JPM Coin.
“ We believe there are many uses where a blockchain can replace or improve contracts, data ownership and other enhancements; for some purposes, however, it is currently too expensive or too slow to be deployed.
“ We expect to achieve double-digit market share over time in Payments, being the world’s most innovative bank, as well as the safest and most resilient. “
On February 15, J.P. Morgan revealed its interest in the metaverse by releasing a research report titled “Opportunities in the metaverse” and establishing a virtual presence in Ethereum-powered virtual world Decentraland .
J.P. Morgan’s 18-page report , which examines the “exciting opportunities” the metaverse “presents for consumers and brands”, was produced by its blockkchain division Onyx .
Here is how they explained what the metaverse is:
“ The metaverse is a seamless convergence of our physical and digital lives, creating a unified, virtual community where we can work, play, relax, transact and socialize. The metaverse is still early in its evolution, and there is no singular, all-encompassing definition to which people can turn. Themes of what the metaverse is and could be, however, are emerging.
“ A key point is that there is no one virtual world but many worlds, which are taking shape to enable people to deepen and extend social interactions digitally. This is done by adding an immersive, three-dimensional layer to the web, creating more authentic and natural experiences. “
Here are some numbers mentioned by the Onyx team to give everyone an idea of the opportunities the metaverse offers: Transact — “ Every year, $54 billion is spent on virtual goods, almost double the amount spent buying music “
Socialize — “ Approximately 60 billion messages are sent daily on Roblox “
Create — “ GDP for Second Life was about $650M in 2021 with nearly $80M USD paid to creators “
Own — “ Non-fungible tokens (NFTs) currently have a market cap of $41 billion “
Experience — “ 200 strategic partnerships to date with The Sandbox, including Warner Music Group to launch a music-themed virtual world “
Near the end of the report, they talked about their 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. Our approach to payments and financial infrastructure will allow that interoperability to grow.
“ We believe the existing virtual gaming landscape (each virtual world with its own population, GDP, in-game currency and digital assets) has elements that parallel the existing global economy. This is where our long-standing core competencies in crossborder payments, foreign exchange, financial assets creation, trading and safekeeping, in addition to our at-scale consumer foothold, can play a major role in the metaverse. “ We are building and scaling new emerging technologies to modernize infrastructure and business models including but not limited to tokenization and digital identity, as we strive for perpetual innovation and better ways to organize financial transactions and payments in the decentralized web. “On the same day, JPMorgan also announced that it had become the first major bank to enter the metaverse by establishing a virtual presence called “Onyx Louge” in Decentraland. As The Block reported , this location “features an image of bank CEO Jamie Dimon, which transforms into a jpeg image of Onyx’s Christine Moy .” Moy is Global Head of Liink, Crypto & Metaverse at Onyx.On 15 January 2021, during the JPMorgan Chase Q4 2020 Earnings Call , CFO Jennifer […]
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