Investment banking firm, JP Morgan is looking to launch a single digital identity to enhance trusted ways of allowing users to navigate virtual domains like Metaverse and the next World Wide Web, Web3. Digital interactions such as using cryptocurrency requires as much protection against identity fraud as exchanging physical assets.
The creation of a digital identity would give users autonomy over securing their identity and trading information, money and digital assets across virtual realms.
“Imaging using only your credit score to take advantage of buy now, pay later options without revealing all of your personal information. Prove ownership of your NFTs across platforms, and create content with freedom while traveling between digital spaces in a trusted way.”
The digital identity offering is supported by JP Morgan’s, Onyx, one of the company’s blockchain-based platforms underpinning online payment transactions. Web3 is proclaimed to be the next-generation phase of the internet focused on decentralisation and cryptocurrency. A growing number of financial institutional are tapping the crypto-market as it is transforming the international monetary and financial system. The International Monetary Fund estimates the crypto market is valued at $2.5 trillion.
Mastercard is acting between large banks and crypto trading platform Paxos to be able to offer them the opportunity to optimise their digital banking services. In August 2021, according to Blockdata, 55% of 100 top banks invested in the blockchain or digital crypto spaces. Currently the most active investors in the banking sphere are KB Financial Group, United Overseas Bank, Citigroup, Goldman Sachs and Commonwealth Bank of Australia.