Bpifrance Invests 25-Million-Euros in Crypto to Boost French Blockchain Ecosystem

France’s state-owned bank, Bpifrance, has announced a significant investment of 25 million euros ($27 million) in cryptocurrencies to support local crypto and blockchain projects. This initiative is part of a broader strategy to promote emerging technologies and strengthen the French blockchain ecosystem. The bank aims to back newly formed projects with a strong French presence, focusing on areas such as decentralized finance (DeFi), staking, tokenization, and artificial intelligence (AI). In return for its investment, Bpifrance will receive tokens, which it plans to hold as part of its investment strategy.

The investment plan is supported by the French Ministry of Economy and Finance and is seen as a key step in positioning France’s blockchain ecosystem on the international stage. French digital and AI minister Clara Chappaz emphasized the importance of public and private financing in achieving this goal. Arnaud Caudoux, deputy CEO of Bpifrance, highlighted the growing importance of blockchain companies and the need to increase French competitiveness in the digital assets field. He noted that the US is accelerating its own crypto strategy, making it crucial for France to keep pace.

Bpifrance has a long history of supporting the blockchain sector, having invested over 150 million euros ($162 million) in the past decade. Notably, the bank helped finance the crypto hardware wallet company Ledger in 2014. In 2022, Bpifrance began testing limited investments through tokens, including a deal with the DeFi lending platform Morpho. This investment has grown to be the 12th largest protocol by value.

This initiative is part of a broader trend of venture capitalists participating in investments paid in tokens. This approach allows financiers to receive a portion of the token supply, subject to varying lockup periods where the tokens cannot be sold. Typically, a portion of the token supply is also given to select public users to drum up liquidity, which can affect token values if they cash out.

Bpifrance’s investment in crypto and blockchain projects is a strategic move to ensure that France remains competitive in the rapidly evolving digital assets landscape. By focusing on projects with a strong French footprint, the bank aims to foster innovation and growth within the country’s blockchain ecosystem. This initiative is expected to have a significant impact on the development of emerging technologies in France, positioning the country as a leader in the global blockchain industry.