France’s State Bank Dives Into Crypto With $27M Investment

Bpifrance, the state-owned bank of France, has revealed intentions to invest 25 million euros ($27 million) in digital currencies. The money will be allocated by the bank on the back of blockchain initiatives that already have a presence in France. In exchange, Bpifrance will obtain tokens from the initiatives it supports. DeFi, staking, tokenization and artificial intelligence will be the focus areas of the funding.

The French Ministry of Economy and Finance supports the initiative. Bpifrance expressed that it aims to promote innovative blockchain technologies and enhance the nation’s involvement in this expanding sector. Although blockchain is growing worldwide, the bank observed that French investments in the field remain limited.

Government Push to Boost Crypto Innovation

France is taking steps to increase its role in the crypto industry. Clara Chappaz, France’s digital and AI minister, said that both public and private funding are essential to ensuring the country’s competitiveness in the global market.

Bpifrance Deputy CEO Arnaud Caudoux shared similar views. He believes blockchain companies will have an increasing role in the economy and that France needs to strengthen its position.

“The US is really accelerating its own crypto strategy, so this is all the more important,” Caudoux said at a press conference, according to Reuters. He also noted that Bpifrance began investing in crypto before the United States launched its latest initiatives in the sector.

Years of Blockchain Investments

Bpifrance has been involved in blockchain investments for over ten years. It has already contributed more than 150 million euros ($162 million) to various projects. One of its early investments was in Ledger, a French company that makes crypto hardware wallets. The bank helped fund Ledger in 2014.

In 2022, Bpifrance started testing token-based investments on a small scale. One of its first deals was with Morpho, a DeFi lending platform. Morpho has since grown into one of the largest DeFi protocols, with a total locked value of $3.24 billion, according to DefiLlama.

Crypto Investments on the Rise

Bpifrance’s approach reflects a growing trend in the crypto industry. More venture capital firms are investing in blockchain projects through tokens. Crypto venture capital deals are expected to exceed $18 billion in 2025, up from $13.6 billion in 2024.

When crypto projects launch tokens, they often allocate a portion to investors with lock-up periods that prevent immediate sales. Some tokens are also released to the public to create liquidity. If users sell too quickly, it can affect token prices.

Bpifrance’s latest action demonstrates its dedication to enhancing France’s position in the blockchain industry. The bank is positioning the country as one of the leaders in the digital asset space with the backing of the government.

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