MetaFi: reimagining finance in the metaverse

Abstract

Purpose This literature review aims to provide a comprehensive synthesis of Metaverse Finance (MetaFi), which combines emerging technologies such as blockchain, decentralized finance (DeFi) and metaverse technologies. The article proposes a novel three-layer MetaFi framework attempting to consolidate fragmented research on digital financial assets, decentralized intermediaries and immersive marketplaces online. Design/methodology/approach We conducted a systematic literature review (SLR) adopting PRISMA guidelines, by analysing 29 peer-reviewed articles that are either Scopus Q1/Q2 or ABDC A*/A journal-indexed, published between 2021 and 2025. We devised a structured review matrix, thematic synthesis and bibliometric validation to enable MetaFi framework. Findings The review identified three foundational layers of MetaFi: (1) Digital Financial Assets [Cryptocurrencies, Utility tokens, Stablecoins, Non-Fungible Tokens (NFT) and Security tokens]; (2) Decentralized Financial Intermediaries [Virtual banks, DeFi protocols, Decentralized Autonomous Organizations (DAOs)] and (3) Immersive Financial Marketplace (Virtual stock exchanges, Tokenized real estate platforms, Governance token markets). We identified six critical gaps, including empirical testing of metaverse models, governance effectiveness of DAOs, cross-platform interoperability, ESG perspectives, behavioural perspectives and regulatory challenges in MetaFi. Originality/value This review unifies the fragmented domains of DeFi, DAOs, NFTs and immersive marketplaces into a single MetaFi architecture. Its originality lies in revealing the MetaFi logic as to how digital/virtual assets, decentralized intermediaries and virtual markets blend as an integrated economy. By theorizing these interdependencies, this review positions MetaFi as a new institutional field of financial research, offering scholars a conceptual foundation, investors a structural lens and policymakers a roadmap to govern the next generation of digital finance.