Bpifrance unveils $27M crypto fund to boost blockchain projects

Key Takeaways

Bpifrance launches a $27 million fund to help France’s blockchain sector.
This funding marks a pioneering transfer amongst sovereign funds globally.

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Bpifrance, one among France’s strongest and influential state-backed establishments, introduced Thursday it is going to make investments up to €25 million (roughly $27 million) in digital belongings to help the nation’s blockchain sector.

The financial institution won’t construct a strategic Bitcoin reserve, however will deal with supporting crypto companies with a robust French presence. Its goal areas are DeFi, bodily networks, tokenization, (re)staking, layer 1, 2, and three protocols, AI, and identification certification.

Despite the $27 million fund being small in contrast to the entire $2.9 trillion crypto market cap, Bpifrance’s transfer alerts a strategic effort to bolster the French crypto ecosystem.

According to the financial institution, the funding initiative represents a pioneering step amongst sovereign funds.

“By accelerating its token investment strategy, Bpifrance reaffirms its commitment and strengthens its support for the development of French digital asset economy players operating within the European regulatory framework,” stated Arnaud Caudoux, Deputy CEO of Bpifrance.

Bpifrance is not any stranger to the blockchain world, having invested €150 million over the previous decade in over 200 startups.

The new capital shall be deployed by means of direct fairness stakes or investments by way of different funds—whether or not French or overseas—so long as these funds commit to reinvesting at the least double Bpifrance’s contribution again into France.

Bpifrance has explored web3 alternatives by means of initiatives just like the Ledger Cathay Capital fund, backed by Ledger and Cathay Innovation. The financial institution supported the launch of the €100 million ($110 million) early-stage enterprise fund.

The state-owned financial institution additionally backs different companies like Acinq, a Bitcoin fee community developer, Kriptown, a digital asset-based SME financing platform, and DeFi protocols like Morpho.

“Bpifrance’s initiative sends a clear message about our ambition to make France a leader in these emerging technologies,” stated Clara Chappaz, Minister Delegate for AI and Digital Affairs. “We are taking another step forward to help our national champions scale in a highly competitive sector. The commitment of both public and private investors is crucial for ensuring our ecosystem holds a strong, lasting position on the global stage.”

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