France’s state-owned investment bank, Bpifrance, has committed €25 million ($27 million) to purchase cryptocurrencies as part of its strategy to support homegrown blockchain initiatives.
In a March 27 announcement, Bpifrance revealed its plan to invest in emerging projects with a strong French presence, receiving tokens in return. The bank aims to fund initiatives in decentralized finance (DeFi), staking, tokenization, and artificial intelligence, aligning with the government’s push to strengthen the national blockchain ecosystem.
The French Ministry of Economy and Finance supports the initiative to position France as a leader in blockchain innovation. The bank noted that while the global blockchain sector rapidly expanding, French participation remains limited. Digital and AI minister Clara Chappaz emphasized that both public and private funding are crucial for securing France’s place on the global stage.
Bpifrance’s deputy CEO, Arnaud Caudoux, underscored the importance of blockchain technology, stating that the bank is committed to enhancing France’s competitiveness in the digital asset space. He highlighted the U.S.’s increasing focus on crypto, reinforcing the urgency of France’s strategic investments.
Bpifrance has been active in the blockchain space for a decade, investing over €150 million ($162 million) in the sector, including early funding for hardware wallet company Ledger in 2014. In 2022, the bank began experimenting with token-based investments, including backing DeFi lending platform Morpho. The project has since grown into the 12th-largest DeFi protocol, with a total value of $3.24 billion, according to DefiLlama.
The move comes as venture capital interest in crypto surges. Research firm PitchBook projects that crypto-related VC deals will surpass $18 billion this year, up from $13.6 billion in 2024. Typically, crypto projects allocate a portion of their token supply to investors, often subject to lockup periods. Meanwhile, public token distributions can sometimes lead to price fluctuations as early recipients cash out.
Bpifrance’s commitment to blockchain investment follows a significant milestone in France’s financial sector. Société Générale, the country’s third-largest bank by assets, successfully executed a blockchain-based repurchase agreement (repo) transaction with the Banque de France.
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