Another Chinese city is launching a fund worth over $1 billion in order to support the development of blockchain-focused enterprises.
The district government of the Jiangbei new area in Nanjing city announced the plan to launch the 10 billion yuan (around $1.4 billion) blockchain fund last Friday. The project will be funded through a public-private partnership, according to a report from Xinhua News Agency.
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.
The effort follows reports that the municipal governments of the Chinese cities of Hangzhou and Shenzhen have both launched blockchain-dedicated funds of $1.6 billion and $80 million, respectively.
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.