Bpifrance, the state-owned French public investment bank, has unveiled plans to directly invest €25 million which is equilvalent to $27 million in digital assets—marking a bold leap into crypto. The initiative aims to support French blockchain startups, foster innovation, and secure France's position in the global digital asset race.
Background
- On March 27, Bpifrance announced a significant expansion of its crypto strategy with the creation of a €25 million ($27 million) fund dedicated to acquiring digital tokens.
- This move makes Bpifrance one of the first sovereign-backed institutions to directly invest in crypto assets, rather than traditional equity.
- Backed by France’s Ministry of Economy and Finance, the initiative aligns with Bpifrance’s long-term strategy to promote innovation and support emerging sectors in France.
- The bank plans to support a range of blockchain-linked models—including DeFi, DePINs, staking, tokenization, Layer 1-3 protocols, AI, and identity solutions—by purchasing tokens directly.
- These investments will complement the bank's ongoing funding through grants, loans, and equity, provided by its other arms like Bpifrance Digital Venture and Large Venture.
Why Should You Pay Attention?
- Bpifrance’s shift toward token-based investments marks a significant validation of the digital asset ecosystem by a sovereign entity.
- It opens the door for more public-private synergy within the French Web3 sector, providing homegrown startups with not just capital, but strategic public backing.
- The fund also comes at a time when global competition to attract crypto innovation is intensifying, particularly with pro-crypto policy shifts in the U.S.
Who Said What?
- Arnaud Caudoux, Deputy CEO of Bpifrance disclosed that recent U.S. crypto-friendly policies made this strategy “much more urgent.” Caudoux added:
“With the acceleration of its token investment strategy, Bpifrance reaffirms its commitment and strengthens its support for the development of French players in the digital asset economy.”
- Clara Chappaz, Minister Delegate for AI and Digital, stated:
“We are taking another step to enable our national champions to scale in a sector where competition is intense… positioning our ecosystem sustainably on the international stage.”
Zooming Out
- This move reflects France’s growing ambition to become a major hub for blockchain innovation in Europe.
- Over the past decade, Bpifrance has invested more than €150 million ($152 million) in blockchain startups and funds, backing companies like Ledger, Flowdesk, and Morpho.
- Now, with direct token investments, the bank is doubling down on its Web3 play—embracing crypto not just as a financial trend, but as a cornerstone of digital sovereignty and innovation.
- As global jurisdictions jostle for crypto leadership, France is betting on public financing to keep its talent and tech at home.
