Government-backed Blockchain Fund Launches in China
The Xiong’An Global Blockchain Innovation Fund launched with $1.6 billion (10 billion yuan) to funnel into Chinese blockchain startups. The announcement occurred during the grand opening of the Hangzhou Blockchain Industrial Park in China.
The industrial park is located in one of the biggest tech hubs in China, Hangzhou city in Zhejiang province. The city is known as an incubator for innovation, with major tech companies such as Alibaba located within the city.
Additionally, the report stated that the city’s industrial park will use as an incubator for blockchain startups.
Tunlan Investments, a Hangzhou based VC firm, started off this fund.
The Yuhang District Government, the Future Science and Technology City Administrative Committee, and the Hangzhou Yanqi Investment Management Co. jointly funded Xiong’An Global Blockchain Innovation Fund.
“Government-guided funds” accounted 30% of the investment, according to a report in Sohu.
Moreover, Hangzhou Haoyu Investment Management is made up of Handan Investment and INBlockchain. Its previous projects have included EOS, Qtum, Zcash, and SIA.
Major names from China have been roped in to manage this innovation fund. This includes the likes of Xu Xiaoping and Li Xiaolai. Both these men have years of experience in the blockchain technology.
Xu Xiaoping is the founder of Zhenfund. It is a venture capital firm that has invested in blockchain projects such as Stream and Lino. He will also serve as the fund’s advisor.
Furthermore, Lix Xiaolai, a notable bitcoin investor and important figure in the crypto space, will manage the fund.
The government of China is traditionally anti-cryptocurrency but has maintained a neutral stance when it comes to the blockchain technology.
Regardless of their interest in blockchain technology, China continues to be a hostile nation with the topic of digital currencies. China blocked all crypto exchanges and trading platform in mid-2017. Since then, the country imposed some strict regulations on mining activities as well.
Other Blockchain Projects Open
During the opening of the park, a total of ten Blockchain projects were launched. These include those focusing on blockchain community engines, digital asset trading services, blockchain cloud computing platforms, and informational databases were “successfully contracted and settled.”
Similarly, the Zhejiang Xiongan Blockchain Strategic Development Research Institute was launched inside the industrial park.
It was a step in the same direction as initiatives, but uses new players, ETHNews previously reported.
Further, the Xiongan Global Blockchain Innovation Fund jointly funded the institute.
The Hangzhou Blockchain Industrial Park, in union with the Xiongan Global Blockchain Innovation Fund and the Zhejiang Xiongan Blockchain Strategic Development Research Institute, will function altogether. They will provide the academic, financial, and industrial foundation for the entire initiative moving forward.