French Investment Bank Bpifrance Launch $27M Fund to Buy Crypto

Bpifrance, a prominent French government-supported group, announced it would put up to €25 million (about $27 million) into digital assets. This move is a change for Bpifrance, which has already done a lot to help blockchain innovation.

Over the last ten years, it has invested over $194.2 million in the field. These earlier investments were mainly in companies that help make markets, including blockchain startups, businesses, and blockchain tech solutions.

Now, Bpifrance is more active by creating a special fund to buy cryptocurrencies directly. It will focus on helping French blockchain projects. The fund will often focus on new tokens to the market before they are listed on big crypto exchanges.

“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,” Deputy CEO of Bpifrance Arnaud Caudoux asserted.

Bpifrance Launch Crypto Funds

Bpifrance made it clear that it will not create a large Bitcoin reserve. Instead, it will focus on helping crypto businesses with a strong French presence. Areas for investment include decentralized finance (DeFi), physical networks, tokenization, restaking, layer 1, 2, and 3 protocols, artificial intelligence (AI), and identity verification.

While the $27 million fund represents a modest sum compared to the overall $2.9 trillion crypto market capitalization, Bpifrance’s initiative underscores a strategic endeavor to reinforce the French crypto ecosystem. According to the bank, this investment represents a pioneering step among sovereign funds.

Bpifrance has looked at Web3 before, such as through the Ledger Cathay Capital fund, backed by Ledger and Cathay Innovation. The bank helped start this $108 million fund for new businesses. The government-owned bank also allows others, like Acinq, a Bitcoin payment company; Kriptown, a platform for small business loans using digital assets; and DeFi systems like Morpho.

Investment Patterns

Instead of investing in cryptocurrencies like Bitcoin or Ethereum, Bpifrance will focus on smaller coins, mainly from France, that are often still being developed. By investing in these coins early, Bpifrance hopes to help French crypto businesses grow and make France competitive in the fast-changing market.

“Bpifrance’s initiative is a strong signal of our determination to make France a country of excellence for these technologies,”  Minister Delegate for AI and Digital Affairs Clara Chappaz states.

Bpifrance likes smaller coins because it wants to support new projects in the country in the long term. This approach aims to make things easier for users and help them adapt to changing needs. The bank will also allow these projects to be listed on cryptocurrency exchanges, increasing their visibility.