Bpifrance’s Investment in Blockchain

Bpifrance, France’s influential state-backed institution, announced on Thursday its plan to invest up to €25 million (approx. $27 million) in digital assets to bolster the country’s blockchain sector.

The focus will not be on establishing a Bitcoin reserve but rather on supporting crypto businesses with a significant French presence. Targeted areas include DeFi, physical networks, tokenization, (re)staking, layer 1, 2, and 3 protocols, AI, and identity certification.

Though the $27 million fund is small compared to the $2.9 trillion crypto market cap, Bpifrance’s initiative marks a significant step forward for the French crypto ecosystem.

According to Bpifrance, this investment represents a pioneering effort among sovereign funds.

> “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,” stated Arnaud Caudoux, Deputy CEO of Bpifrance.

Already an active player in the blockchain space, Bpifrance has invested €150 million in over 200 startups over the past decade. The new funds will be allocated through direct equity stakes or investments in other funds, provided those funds commit to reinvesting at least double Bpifrance’s contribution back into France.

Bpifrance has also explored web3 opportunities through initiatives such as the Ledger Cathay Capital fund, which is backed by Ledger and Cathay Innovation, along with supporting the launch of a €100 million ($110 million) early-stage venture fund.

The state-owned bank backs companies like Acinq, a Bitcoin payment network developer, Kriptown, a digital asset-based SME financing platform, and DeFi protocols like Morpho.

> “Bpifrance’s initiative sends a clear message about our ambition to make France a leader in these emerging technologies,” said Clara Chappaz, Minister Delegate for AI and Digital Affairs. “We are taking another step forward to help our national champions scale in a highly competitive sector. The commitment of both public and private investors is crucial for ensuring our ecosystem holds a strong, lasting position on the global stage.”