Crypto Exchange Huobi Announces $93 Million Target for Blockchain Startup Fund

Cryptocurrency exchange Huobi, along with a few South Korean partners, has announced that they will be joining hands to create a blockchain startup investment fund.

Joint Blockchain Fund

Popular Singapore-based exchange, Huobi, has revealed that they will be joining a joint collaboration with Chinese financial company, NewMargin Capital, and South Korean securities giant, Kiwoom Securities Co., Ltd, according to a report from China Money Network.

This collaboration has taken the form of a blockchain investment fund, which will help to fund innovative and promising blockchain startups located in China and Korea. A multitude of South Korean financial institutions have also joined the fund as investors. These institutions were revealed to be the three following banks.

  • Korea Development Bank
  • Industrial Bank of Korea
  • Mirae Asset Financial Group

The fund has its eyes on its goal of at least $93 million dollars worth of starting capital. This substantial amount of funding should allow for a high quantity of startups to benefit from this fund. Huobi and its partners also hope that this move will help increase blockchain adoption and collaboration between the two dominant Asian countries.

This announcement along with others made earlier this month has made it clear that Huobi is trying to redefine itself while reaching for new heights.

Huobi: The Next Blockchain and Cryptocurrency Giant?

Huobi just announced that they will also be creating an exchange-traded fund (ETF) which will mirror the prices of 10 crypto assets listed on the Huobi exchange. However, for the time being, Huobi will only offer for prospective investors to use cryptocurrencies to buy this ETF, rather than fiat currencies.

This new investment, dubbed HB10, will allow for more casual retail investors to gain access to a variety of cryptocurrencies in an easily accessible format.

At the start of May, Huobi announced that they would be creating a $1 billion blockchain ‘incubator’ in the Hainan Province in China. This incubator is going to act in a similar fashion to the new fund, but will provide extra support in the form of a workspace and advice from market experts.

Earlier this week, the Chinese president expressed his high hopes for innovative new technologies, like the blockchain and artificial intelligence technologies. The announcement of Huobi Labs, as noted by a Huobi press release, stated:

“It is a national-level strategy that President Xi Jiping, personally planned, personally deployed, and personally promoted.”

It is has become apparent that Huobi, along with the Chinese government, has been trying to speed up the growth of blockchain involvement and development in China. But time will only tell whether Huobi and the Chinese government will succeed.  

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