Binance, one of the largest cryptocurrency exchanges in the world, has announced plans to launch a $1 billion venture capital fund for crypto projects.
Ella Zhang, the head of the firm’s incubator Binance Labs, announced (Chinese) during an online conference on Thursday May 31, that the new venture capital fund will invest in blockchain projects and other crypto-focused funds.
Investments from the so-called “Community Influence Fund” will be conducted exclusively in Binance Coin (BNB), Binance’s own cryptocurrency token. BNB currently has a market cap of around $1.6 billion.
According to the announcement, the first project to receive funding from the new VC fund will be Dache Chain, a blockchain-based version of Uber created by Weixing Chen. Chen founded ride-hailing service Kuaidi Dache, which later merged with $60 billion Chinese ride-hailing giant Didi Chuxing.
Binance’s new venture capital project will invest in up to 20 other funds with no less than $100 million AUM.
According to a post on Medium on June 1, the new fund is “especially interested” in projects related to decentralized exchanges, algo trading, market data and news apps, blockchain-based chat and decentralized VPNs.