JP Morgan Proposes Web3 Digital Identity Solution

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JP Morgan, a global leader in financial services, is exploring solutions for digital identity in a Web3 environment. In a video posted to its Onyx website, the bank shared possible solutions and innovations for the cumbersome internet problem of digital identity. The all-in-one solution JP Morgan proposes would operate from a single digital wallet, from which users could control access to their personal information.

An example the video puts forth is that of a user employing their credit score to take part in “Buy Now, Pay Later” programs. Although the user would rely on their credit score to gain access to the programs, the programs would not be able to see more information beyond that score. In effect, the all-in-one solution would protect the user’s personal information.

From the digital wallet, users would be able to connect all their NFTs to different marketplaces as well. They would be able to “traverse” across multiple worlds, including the metaverse, decentralized finance, and others, all with the use of a single wallet. This includes the ability to connect to a host of other sites, all while using the same information rather than multiple logins and passwords.

JP Morgan states at the end of the video that it proposes a “proof of concept” and that the video doesn’t mean the bank will pursue an actual solution. But it aligns with a paper on the Onyx website that explores digital identity and the need for a Web3 solution, one that is both simplified and decentralized.

Detractors of the video will say that the one-size-fits-all solution is not decentralized enough and, in fact, seems to centralize identity more than anything. However, a big TradFi institution like JP Morgan making Web3 moves may be a bullish sign for the space.

Traditional Finance Institutions Becoming Bullish on Web3

TradFi institutions — big banks and credit card companies — are not known for innovation. But over the past year, they have slowly become more bullish on Web3. Here are three stories involving TradFi companies and Web3 this year.

First, there is Capital One. Five months ago, the company entered Web3 with three trademark applications. The applications aimed to protect its name, boomerang logo, and “What’s in your wallet?” slogan in Web3.

Second, there is Van Eck. Six months ago, the global asset management firm decided to airdrop 1,000 NFTs to members of its crypto community. The NFTs act as digital membership cards and grant holders access to exclusive research, events, and more.

Third and finally, there is the subject of our article: JP Morgan. Eight months ago, the bank said the metaverse could be a $1 trillion market. The prediction came through its Onyx department, which recently had opened a branch in the Decentraland metaverse.

JP Morgan’s solution to digital identity in Web3 could spark some innovation, especially if the bank pursues the endeavor. Here at Rarity Sniper, we’ll be keeping our ears to the ground for further developments in the story.