Another Chinese city is launching a fund worth over $1 billion in order to support the development of blockchain-focused enterprises.
Yuandao Capital – a fund launched by Yuan Dao, chairman of a blockchain industry alliance established by top Chinese academic institutions – will join as a partner of the blockchain fund. The other partner is Jolmo Investment Management, a publicly listed venture capital firm based in Nanjing.
The Nanjing government will contribute 30 percent of the total amount as a guiding fund, while the other 70 percent will come from the private sector, another local news report indicates.
Thirty percent of the fund will focus on early stage blockchain startups, as well as innovations from academic institutions in China; 40 percent will be allocated to traditional industrial companies looking to adopt blockchain technology; and the remainder will be used to "discreetly" fund cryptocurrency projects, the report said.
Nanjing's plan also comes as President Xi Jinping and the State Council are both voicing support for blockchain development. Xi notably endorsed blockchain as an economic "breakthrough" for the first time in his remarks to a group of scientist in May.
Nanjing image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.