World’s largest cryptocurrency exchange platform in terms of trading volume, Binance recently announced about establishing a venture fund for blockchain and cryptocurrency startups which will be worth $1 billion. Head of exchanger’s incubator program, Binance Labs, Ella Zhang made the official announcement about the initiative which is called “Social Impact Fund”.
According to Zhang, Binance will be making the entire contribution to the fund and hence investments will be made in Binance token (BNB). It was also informed that the company plans to invest the confirmed $1 billion fund over 10 different phases investing $100 million at a time.
Binance Labs will be focusing on those startups which work with public blockchains, decentralized exchanges, custody/ payments/ wallet, stable digital currency as well as compliant alternative trading systems or security token platforms.
The approach of funding will include not only direct payments to blockchain startups but also financing other blockchain funds. As a part of this initiative, the funds which already have a fund size of $100 million minimum accumulated assets under management may be receiving financing from Binance Labs.
In addition to the introduction to Binance Labs, Zhang also revealed the company’s plans for two other initiatives in the nearest future. A separate ‘Binance Ecosystem Fund’ will be created, which will have twenty future partners together with a Cryptocurrency Governance Initiatives (CGI) which will be aiming at encouraging self-regulation in the industry and fight scams.
Meanwhile the industry fans will be well aware that this is yet not the first effort of Binance to support blockchain and cryptocurrency startups. The company earlier in April financed Signal founder’s proposal for a new cryptocurrency development for mobile payments. In addition, this is not the first major company to support the industry startups as earlier in Coinbase, Ethereum and Ripple came up with similar initiatives supporting projects operating in the field of blockchain and cryptocurrencies in different ways.