Other $1 Billion Blockchain Fund To Be Launched With Government Backing

Another Chinese city is releasing a fund estimated at over $1 billion in order to help the improvement of blockchain-focused enterprises.

The district government of the Jiangbei new territory in Nanjing city reported the objective to launch the 10 billion yuan (around $1.4 billion) blockchain fund last Friday. The task will be supported through a public-private organization, as indicated by a report from Xinhua News Agency.

Yuandao Capital – a fund launched by Yuan Dao, chairman of a blockchain industry organization together settled by top Chinese academic intuitions – will join as an accomplice of the blockchain subsidize. The other accomplice is Jolmo Investment Management, a publicly listed funding firm situated in Nanjing.

The Nanjing government will contribute 30 percent of the total sum as a guiding store, while the other 70 percent will originate from the private segment, another local news report demonstrates.

30% of the fund will center around early-stage blockchain new companies, and in also developments from academic establishments in China; 40 percent will be assigned to traditional industrial companies hoping to embrace blockchain innovation; and the rest to be utilized to “discreetly” support cryptocurrency ventures, the report said.

The effort takes after reports that the municipal government of the Chinese urban areas of Hangzhou and Shenzhen has both released blockchain-dedicated assets of $1.6 billion and $80 million.

Nanjing’s deal also comes as President Xi Jinping and the State Council are both voicing support for blockchain advancement. Xi supported blockchain as an economic “breakthrough’’ for the first time for his comments to a team of scientists in may.