FameEX Hot Topics | France’s State Bank Invests $27M in Crypto Projects with Strong French Ties

France’s state-owned investment bank, Bpifrance, has announced it will allocate €25 million (around $27 million) toward purchasing cryptocurrencies to support local blockchain and crypto projects. In a press release dated March 27, the bank stated it plans to invest in newly launched ventures that have a “strong French footprint.” In return for its investments, Bpifrance will receive project tokens, focusing its support on decentralized finance (DeFi), staking, tokenization, and artificial intelligence initiatives.

This initiative is backed by the French Ministry of Economy and Finance and is aimed at promoting emerging technologies while strengthening France’s presence in the global blockchain ecosystem. Despite the global growth in blockchain innovation, Bpifrance noted that French participation remains limited. The effort is part of a broader national strategy to elevate the country's competitiveness in the rapidly expanding field of digital assets and blockchain infrastructure.

French Digital and AI Minister Clara Chappaz emphasized the importance of both public and private investment in maintaining France’s long-term position in the international tech landscape. Bpifrance Deputy CEO Arnaud Caudoux echoed this sentiment, saying the bank is confident that blockchain companies will become increasingly vital in the coming years. Caudoux highlighted the urgency of the investment, pointing to the U.S.'s acceleration of its own crypto strategy as a signal that France must act swiftly to remain competitive.

Bpifrance is no stranger to the blockchain space. The bank has supported the sector for over a decade, investing more than €150 million (about $162 million). Notably, it helped fund crypto hardware wallet provider Ledger in 2014. Since 2022, Bpifrance has also been experimenting with token-based investments, including a deal with DeFi lending platform Morpho. Morpho has since grown to become the 12th-largest DeFi protocol, with a total value of $3.24 billion, according to data from DefiLlama.

Token-based financing is common in the crypto industry, with venture capitalists often receiving a portion of a project's token supply, subject to lockup periods. These lockups prevent immediate selling, but initial token distributions to public users can create market volatility if recipients cash out quickly, affecting token prices and project momentum.

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