A new blockchain fund has been instituted with the backing of a Chinese city government. It is a 1-Billion-dollar fund which will invest in blockchain-focused companies.
The fund is called the Xiong’An Global Blockchain Innovation Fund. This was announced last week at the opening ceremony of a new Blockchain Industrial Park in the Chinese city of Hangzhou – the city is known for its support for tech and innovation as it plays host to some tech giants like Alibaba.
Sohu reports that the fund was launched by the Venture Capital firm Tunlan Investment which is based in the city of Hangzhou. The fund will also be supported by the government of Hangzhou through a contribution of over $400 million.
The Hangzhou industrial park is expected to be an incubation centre for blockchain start-ups. Xu Xiaoping who founded the venture capital firm Zhenfund as has been appointed advisor for the fund. Zhenfund has invested in some blockchain projects in the past, some of which are Lino and Stream. The fund will be managed by Li Xiaolai who is a known Bitcoin tycoon, blockchain investor and enthusiast.
Despite the Chinese government’s crackdown on mainstream cryptocurrency exchange platforms in times past, it has consistently encouraged innovation in tech and blockchain and this fund is the latest step in that direction.