Binance Group, which runs one of the largest digital asset exchanges globally, has announced a $50 million fund for India, to help expand the prospects of blockchain in India. The funds will be used for investing in blockchain startups and platforms, and go towards making investments, both in equity and token, ranging from $100,000 to $5 million.
This new fund has been announced in partnership with WazirX, a cryptocurrency exchange in India that was recently acquired by Binance. The two have jointly set up a USD 50 million Blockchain for India fund (backed by BNB, BUSD, and WRX digital assets) to incubate and invest in blockchain projects and startups focused on solving industrial and social problems through the use of blockchain technology.
The investments will include, but not limited to, fiat-to-digital assets gateway solutions, trading platforms, payment, and remittance solutions, digital asset wallets, stablecoins, DeFi platforms, decentralized applications (dApps) and more.
“Apart from funding transformative blockchain projects in India, we look forward to collaborating with other investment funds to grow the ecosystem even further,” Nischal Shetty, founder of cryptocurrency exchange WazirX – now owned by Binance – said.
The fund will also partner with venture funds in India that are actively investing and supporting the blockchain ecosystem. Additionally, the initiative will look to provide mentorship and support to universities and student organizations interested in setting up university blockchain technology incubators.
Partnership with the fund will help companies in more ways than one, as selected startups will get a boost from the fund’s existing network in the industry, gaining access to Binance Chain, Binance Cloud, Binance DEX, Binance Launchpad, Binance Research, Binance Academy, Binance X and Binance portfolio companies, such as WazirX, DappReview, Trust Wallet, which are part of Binance’s global cryptocurrency ecosystem. Moreover, Binance is offering mentorship and guidance to its partnering startups, showing that the bond will be deeper than just monetary gains.
Goes without saying, that cryptocurrency would also be a focus of this fund. The decision to set up a fund from Binance, comes days after India’s Supreme Court quashed an earlier Reserve Bank ban on trading and holding of cryptocurrencies in India. The decision was made on the disproportionate nature of the central bank’s imposed prohibition from 2018. And even though cryptocurrencies faced the brunt of falling economy, dropping by leaps and bounds in a matter of days, India is still new to the market and thus has a lot of promise, especially considering the population size and data rates in the country.
This is why companies like Binance Group are so keen in developing the cryptocurrency market in India, stating that it will make other investments as well, including in fiat-to-digital assets gateway solutions, trading platforms, payment and remittance solutions, digital asset wallets, DeFi (decentralised finance) platforms and decentralised applications.