JP Morgan has made a strategic investment in Tilia, the payments platform initially built to power the economy of online virtual world Second Life.
Tilia is built for game, virtual world and mobile app developers, handling payment processing, in-game transactions, as well as payouts to creators by converting in-world tokens to fiat currency including USD.
The unit was built from the ground up by Linden Labs to power Second Life and its creator-based economy but is now being spun out as it looks to take cash in on the expected metaverse goldrush.
The firm, which has money transmitter licenses in the US, already works with several virtual worlds and metaverses, online games, and NFT marketplaces, including Second Life, Upland and Avatus.
In addition to the investment, Tilia is working with JP Morgan Payments to enhance its current capabilities throughout its processing platform including providing increased payment and payout methods, and expanding pay-out currencies and support services.
Drew Soinski, senior payments executive, MD, JP Morgan Payments, says: "We believe that contextualized commerce - such as virtual economies within games and virtual worlds - is an area perfectly positioned for innovative payments solutions to play a critical role in the coming years."