Crypto: France Bank Invests $27M in French Projects
Exciting news from France as their state-backed investment bank, Bpifrance, announces a bold move into the crypto world! They’re earmarking 25 million euros ($27 million) to purchase cryptocurrencies, with a clear mission: to fuel the growth of homegrown crypto and blockchain initiatives.
In a press release on March 27th, Bpifrance explained that this investment will champion up-and-coming projects deeply rooted in France. In return for their financial backing, Bpifrance will receive tokens, focusing their investment strategy on promising areas like decentralized finance (DeFi), staking mechanisms, tokenization, and even artificial intelligence.
This strategic plan, championed by the French Ministry of Economy and Finance, has a clear objective: “to foster the development of cutting-edge technologies and bolster France’s thriving blockchain ecosystem.”
Bpifrance pointed out that while the global blockchain space is “currently booming,” French investment funds are still playing a relatively small role, indicating a significant opportunity for growth within their own borders.
Clara Chappaz, France’s Minister for Digital and AI, emphasized that securing both public and private funding is “a key factor in ensuring our ecosystem’s long-term success and competitive standing on the global stage.”
Arnaud Caudoux, Deputy CEO of Bpifrance, expressed strong conviction in the future of blockchain companies. He stated their belief in the “growing importance that blockchain companies will take on in the years to come” and their ambition to “increase French competitiveness and presence in the digital assets field.”
“The US is really accelerating its own crypto strategy, so this is all the more important,” Caudoux noted at a press conference, as reported by Reuters. Interestingly, he added that Bpifrance had already begun supporting crypto projects even before the recent pro-crypto movements in the US.
Bpifrance’s headquarters in Paris. Source: Google
Highlighting their long-term commitment, the bank mentioned they have been backing the blockchain sector for a decade, with investments exceeding 150 million euros ($162 million). Notably, they were early supporters of crypto hardware wallet company Ledger back in 2014.
Bpifrance also shared that they started exploring token investments on a smaller scale in 2022. This included a deal with DeFi lending platform Morpho to acquire its token. Morpho has since become a significant player, currently ranking as the 12th largest protocol by total value locked at $3.24 billion, according to data from DefiLlama.
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It’s worth noting that venture capitalists frequently participate in crypto investments that are paid in tokens. Industry analysts at PitchBook anticipate crypto VC deals to surge to over $18 billion this year, a significant jump from the $13.6 billion recorded in 2024.
The typical approach for crypto platforms launching a token involves allocating a portion of the token supply to investors. These allocations usually come with lock-up periods, restricting when investors can sell their tokens.
Furthermore, to generate initial buzz and liquidity, a portion of the token supply is often distributed directly to select public users. However, this can sometimes lead to a dip in token value if these early recipients decide to sell off their holdings.
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