A fund worth over $1 billion is being launched by another Chinese city so as to support the progress of blockchain-focused enterprises.
The plan to launch the 10 billion yuan (around $1.4 billion) blockchain fund was announced last Friday by the district government of the Jiangbei new area in Nanjing city. According to a report from Xinhua News Agency, the funding of the project will be through a public-private partnership.
A fund launched by Yuan Dao named Yuandao Capital, chairman of a blockchain industry alliance funded by top Chinese academic institutions will come together as a blockchain fund partners. Other partners include a publicly listed venture capital firm based in Nanjing, Jolmo Investment Management.
According to a local news report, the 30 percent of the total amount will be contributed by Nanjing government as a guiding fund, while the other 70 percent will come from the private sector.
The report stated that 30 percent of the fund will lay more emphasis on early-stage blockchain startups, and also innovations from academic institutions in China; 40 percent will be given to traditional industrial companies that are looking to use blockchain technology, and the others will be adopted to “discreetly” fund cryptocurrency project.
The effort comes after the news that the municipal governments of the Chinese cities of Hangzhou and Shenzhen have both established 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 declaring their support for blockchain progress. Xi for the first time in his remarks to a group of scientist in May notably endorsed blockchain as an economic “breakthrough”.