TLDR:
- France’s state-owned bank Bpifrance will invest €25 million ($27M) in cryptocurrencies supporting local blockchain projects
- Focus areas include DeFi, staking, tokenization, and AI with “strong French footprint”
- The initiative is supported by the French Ministry of Economy and Finance
- Bpifrance has already tested token investments since 2022, including in DeFi platform Morpho
- This move aims to increase French competitiveness in a global crypto market worth €2.7 trillion
France is taking a bold step into the cryptocurrency world. The country’s state-owned bank, Bpifrance, announced on March 27 that it will invest €25 million ($27 million) in cryptocurrencies. This money will support local blockchain projects with what they call a “strong French footprint.”
The initiative comes with full backing from the French Ministry of Economy and Finance. It marks one of the first major direct cryptocurrency investments by a sovereign wealth fund worldwide.
Target Areas for Investment
Bpifrance plans to focus its investments on several key areas of blockchain technology. These include decentralized finance (DeFi), staking, tokenization, and artificial intelligence projects.
The bank will receive tokens in return for its investments. This approach allows them to directly participate in the growth and development of these blockchain ecosystems.
French Digital and AI Minister Clara Chappaz highlighted the importance of this move. She stated that public and private financing is “one of the keys to the sustainable positioning of our ecosystem on the international stage.”
This isn’t Bpifrance’s first venture into blockchain technology. The bank has been active in the sector for nearly a decade.
Over that time, it has invested more than €150 million ($162 million) in blockchain-related companies. One of its early investments was in the crypto hardware wallet company Ledger back in 2014.
More recently, the bank began testing limited token investments in 2022. One notable investment was in the DeFi lending platform Morpho.
Morpho has since grown to become the 12th largest DeFi protocol. It now manages about $3.24 billion in value, according to data from DefiLlama.
Competing in a Growing Global Market
The global blockchain ecosystem is expanding rapidly. There are now more than 1,000 digital asset investment funds worldwide.
The total market capitalization of cryptocurrencies exceeds €2.7 trillion. However, French participation in this market remains limited compared to other countries.
Arnaud Caudoux, Deputy CEO of Bpifrance, emphasized the timing of this initiative. He noted that “the US is really accelerating its own crypto strategy, so this is all the more important.”
Caudoux added that Bpifrance had already begun supporting crypto before the US made its pro-crypto moves. This suggests France is trying to establish itself as an early adopter in the public financing of blockchain technology.
Venture capital investment in cryptocurrency is expected to grow substantially this year. According to PitchBook, crypto VC deals are projected to exceed $18 billion in 2025.
This represents a marked increase from the $13.6 billion raised in 2024. Bpifrance’s €25 million investment is part of this broader trend of increasing institutional investment in crypto.
Typically, when crypto platforms launch tokens, they allocate a portion to financiers. These tokens are often subject to lockup periods during which they cannot be sold.
Another portion of tokens is usually given to select public users. This helps create liquidity in the market, though it can sometimes cause token values to drop if users sell their holdings quickly.
A Strategic French Position
Bpifrance’s accelerated investment strategy aims to position France as a center of excellence for blockchain technology. The bank will make direct investments in projects with new blockchain-related business models.
These investments will complement Bpifrance’s existing innovation aid and loans. They will also work alongside equity investments from the bank’s Digital Venture, Large Venture, and French Touch Capital funds.
The ability to invest directly in digital assets represents a major step forward for Bpifrance. It allows the bank to hold digital tokens listed on decentralized financial markets.
This approach will also strengthen Bpifrance’s knowledge of asset tokenization. It will improve their understanding of liquidity management on the blockchain.
Arnaud Caudoux summarized the bank’s vision by saying they are “convinced of the growing importance that blockchain companies will take on in the years to come.” He added that they “want to increase French competitiveness and presence in the digital assets field.”
The initiative reflects France’s commitment to establishing itself as a leader in blockchain technology. By providing public financing to crypto projects, the country hopes to nurture local innovation in this fast-growing sector.
The €25 million investment, while modest compared to global crypto funding, represents an important symbolic step. It signals official French government support for cryptocurrency and blockchain technology.
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