Accounting firms scoop up virtual land in the metaverse

Businesses from all industries, including real estate, technology and cryptocurrency, are buying digital land on platforms such as Decentraland and Sandbox. Executives have begun drafting business plans for operating in the virtual worlds typically envisioned by videogame developers.

New York-based accounting and advisory firm, Prager Metis International LLC, said Friday that it opened a virtual three-story property on the site it bought in late December for about $35,000. The firm, which operates 23 physical offices in the US, Europe and Asia, made its purchase on the Decentraland platform in partnership with Banquet LLC, a firm that funds and manages blockchain ventures.

Chief Executive Glenn Friedman said Prager Metis plans to use its virtual building to advise companies and other new and existing clients on tax and accounting issues. According to Mr. Friedman, the firm expects many of its clients, particularly in the entertainment and fashion industries, to seek its services in the metaverse, as more companies decide to do business there. “If the metaverse is going to replace the Internet, of course business is going to use it,” he said.

Other accounting firms are also venturing into the metaverse. In late December PricewaterhouseCoopers said its Hong Kong unit acquired virtual real estate in Sandbox, a subsidiary of software firm Animoca Brands Corp., for an undisclosed amount.

William Gee, Partner, PwC Hong Kong, said in a statement, “The Metaverse offers new possibilities for organizations to create value through innovative business models, as well as introduce new ways to engage with their customers and communities. “

According to the statement, PwC plans to advise clients on the challenges presented by Metaverse. The firm did not immediately respond to a request for further comment.

It’s not clear whether the other big four companies plan to buy into the Metaverse. KPMG declined to comment. Ernst & Young and Deloitte Touche Tohmatsu did not immediately respond to a request for comment.

Investors are optimistic but also cautious about trading opportunities in the metaverse, with some firms launching related exchange-traded funds. Facebook parent Meta Platforms Inc. and Microsoft Corp. are among the tech giants that envision a potential sale of software and hardware needed for Access, along with the sale of ads, goods and services within the platform.

The first floor of Prager Metis’ virtual building will feature an open-floor plan, a gallery space for non-fungible tokens—digital collectibles, or NFTs—owned by its customers and an entertainment area, the company said. The second floor will house the conference and other meeting rooms, while the terrace will be used primarily to host events.

“We may be as crazy as Avatar, but we’ll have some presence to answer the questions,” said Jerry Eitel, a partner at Prager Metis.