The investment will specifically target projects related to decentralized finance (DeFi), tokenization, staking, and artificial intelligence (AI), promoting projects with a strong French presence.

This investment initiative aims to support early-stage local blockchain projects, enhancing the overall ecosystem in France and reflecting the country's ambition to lead in emerging technologies.

Bpifrance, the French state-owned investment bank, has announced a plan to invest 25 million euros (approximately $27 million) in digital assets to strengthen the country's blockchain industry.

With a decade-long history of backing blockchain startups, Bpifrance has previously invested in notable companies such as ACINQ, Dfns, Flowdesk, and Ledger.

This strategic move by Bpifrance represents a significant advance for sovereign wealth funds, marking a pioneering effort in the direct investment of digital assets.

Arnaud Caudoux, Bpifrance's deputy CEO, emphasized the importance of supporting local crypto players to enhance France's competitiveness in the digital assets space.

Despite a global market with over 1,000 digital asset investment funds managing more than €2.7 trillion, France's presence in this sector remains limited, making this investment particularly noteworthy.

The announcement was made during a blockchain industry event in Paris, attended by Clara Chappaz, France's Minister Delegate for AI and Digital Affairs, who highlighted the need for increased financial support for sustainable growth in the crypto ecosystem.

The initiative is backed by the French Ministry of Economy and Finance, underscoring the importance of public and private financing in enhancing France's international competitiveness in the blockchain sector.

As part of its broader strategy, Bpifrance aims to complement its existing financial tools, such as grants and loans, to create a more competitive environment for French blockchain startups.

This investment aligns with France's ongoing efforts to integrate blockchain into its financial system, exemplified by recent developments such as Société Générale's launch of a MiCA-compliant stablecoin.

Overall, Bpifrance's new allocation signals a commitment to becoming a significant player in the global crypto economy, reinforcing France's position in the digital asset landscape.