Citi, one of the largest financial services providers in the world, has recently released a report on the future of Metaverse. The report noted that the economy around Metaverse has the potential to hit the mark of $13 trillion by 2030.
Dubbed ‘Metaverse and Money’, the latest report highlighted the growing interest in emerging technologies. According to Citi, the interest in Metaverse has jumped substantially following a spike in the sales of non-fungible tokens (NFTs).
Additionally, big technology players have entered the Metaverse ecosystem in the past few months. Last month, financial services giant HSBC announced its partnership with The Sandbox to enter the Metaverse space.
“The Metaverse may be the next generation of the internet. It would combine the physical and digital worlds in an immersive manner. Use cases may include everything we use the internet for today with gaming, commerce, art, media, advertising, smart manufacturing, health care, virtual communities and social collaboration (including for enterprise and education). We estimate the target addressable market (TAM) for the Metaverse economy could be in the range of $8 trillion to $13 trillion,” the report mentioned.
MetaFi
According to the report, financial services will play an important role in the adoption of Metaverse. MetaFi, a combination of Metaverse and Defi, will drive the majority of the growth in emerging technologies. In addition, Citi’s report highlighted that Metaverse is more than just Virtual Reality and its enterprise use cases will increase over the next few years.
“Metaverse finance (MetaFi) will likely be a combination of decentralized finance (Defi), centralized finance (CeFi) and traditional finance (TradFi), with new products specifically designed to meet the unique needs of the new ecosystem. From initial capital formation to supporting commerce within the Metaverse, financial services can play an important role in the evolution,” Citi added in the latest report.
