Bpifrance Unveils $27M Crypto Fund

Bpifrance, one of France's most powerful and influential state-backed institutions, announced Thursday plans to invest up to $27 million (€25 million) in lesser-known digital assets

Bpifrance, a prominent French institution, announced plans to invest up to €25 million ($27 million) in lesser-known digital assets, aiming to strengthen the French blockchain ecosystem.

The move will see Bpifrance, one of France’s most powerful and influential state-backed institutions, build on an existing initiative to invest in crypto startups.

Its new fund will target smaller, newly-issued tokens from French projects, and it will also invest in the equity of promising crypto startups.

Bpifrance will be looking at startups working on a variety of interesting use cases for blockchain technology, such as decentralized finance (DeFi), physical networks, tokenization, staking, layer 1, 2, and 3 protocols, and artificial intelligence.

The initiative marks a pioneering step among sovereign funds, which typically invest in equities, real estate, and private equity. Bpifrance’s investment will be part of a broader effort by the French government to support the development of the country’s crypto industry.

France is a relatively latecomer to the crypto scene, but it has been making rapid progress in recent years.

The government has set a goal of making France a leading hub for crypto and Web3 in Europe.

Bpifrance will invest in crypto startups with a strong French footprint. Its target areas are decentralized finance, physical networks, tokenization, staking, layer 1, 2, and 3 protocols, and artificial intelligence.

“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,” said Arnaud Caudoux, Deputy CEO of Bpifrance.

“This initiative is a pioneering step among sovereign funds.”

Earlier this year, Bpifrance announced plans to invest up to €150 million in startups developing new technologies, including artificial intelligence, robotics, and biotech.

The institution has also been a major investor in France’s startup scene, having invested over 3 billion euros in recent years.

Bpifrance’s investment in lesser-known digital assets is part of a broader effort by the French government to support the development of the country’s crypto industry.

The government has been increasingly supportive of crypto in recent months, as the industry faces increasing difficulties in the U.S. due to the SEC’s enforcement actions.

In addition to Bpifrance’s investment, the French government is also providing grants and tax breaks to crypto startups.

The government is keen to attract more crypto talent and capital to France, especially from the U.S., where startups are facing a hostile regulatory environment.

Bpifrance’s investment is a significant vote of confidence in the French crypto industry. It is also a valuable contribution to the development of the broader European crypto ecosystem.