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Binance Is Looking for 20 Partners for Massive $1 Billion Fund

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Cointelegraph reports that a Binance executive has confirmed that the largest crypto exchange in the world is planning to establish a $1 billion crypto-based fund. The fund will use only Binance’s BNB tokens as an investment vehicle and will be administered via the exchange’s incubator spin-off, Binance Labs.

Binance has supported numerous blockchain projects using the incubator, where about $30 million has been used to support privacy-focused startup Mobilecoin in April. The lab was developed to support startups that have potential and the new fund aims at enhancing these efforts.

Speaking to PANews head of Binance Labs, Ella Zhang, said that the investment will be one level and it will be held on a long-term basis. Zhang explained,

We do proper asset management. We like to lock in long-term projects. Investors and entrepreneurs are locked together. Not believers do not enter.

The fund seeks to bring massive firms on as partners; to qualify to be a partner, you must have at least $100 million in asset management. Zhang said that Binance is looking forward to attract 20 partners to roll out the fund.

Setting the Bar High

The announcement comes just days after a Japanese developer Gumi, announced that it was launching its own blockchain investment fund worth $30 million to attract international projects. The fund will be referred to as Gumi Cryptos and has already attracted four interested parties so far. During the launch, Gumi co-founder Miko Matsumura said the fund would invest in early stages or startups, equity and tokens. Matsumura said,

We will be like financial services investing in game technologies and we believe there is a strong connection between gaming and crypto,

Binance has been seeking ways to enhance its position in the industry through the establishment of new services and products. In April, the company moved to Malta to take advantage of the favorable regulations in the country and to tap into the under-served European market.

With the launching of this fund, Binance follows other firms like Alibaba and Samsung who have set aside huge amounts of resources to support blockchain-based startups around the world.

The announcement also follows the announcement by Huobi, the world’s third largest cryptocurrency exchange by volume, that it is launching a crypto-based exchange traded fund (ETF) – which came earlier today.

In the recent past, there have been unprecedented development of new services and products by crypto exchange platforms as they seek to attract new clients and control the nascent industry. Earlier today, tech giant GMO also announced that it is launching a new mobile app to create more crypto awareness among the public.

Image Credit: Deposit Photos

Do you think Binance will get the 20 partners it’s seeking to establish the investment fund? Share with us in the comments section.

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