Huobi Partners on $93 Million China-South Korea Blockchain Fund
Hot on the heels of its recently announced cryptocurrency ETF offering, Huobi has revealed a new partnership that will see it launch an investment fund dedicated to blockchain startups in China and South Korea.
According to a report by the China Money Network on Friday, the cryptocurrency exchange has teamed up with Chinese investment firm NewMargin Capital and South Korean securities firm Kiwoom Securities on the joint effort. Banks from South Korea, including Korea Development Bank and Industrial Bank Of Korea, are to invest in the fund as limited partners, the report adds.
The companies are hoping to raise the local equivalent of $93 million to be invested in blockchain startups in China and South Korea, as well as to encourage cooperation between blockchain projects in the two nations.
The news comes on the same day that Huobi launched an exchange-traded fund (ETF) based on cryptocurrencies – aimed to allow retail investors to gain exposure to a basket of assets instead of just one at a time. The investment instrument, called HB10, is now open for subscriptions, though the firm will only accept funding using cryptocurrencies.
Also announced today, was a fund set up by rival crypto exchange Binance, which said it was launching a $1 billion "Social Impact Fund" to boost the growth of blockchain and cryptocurrency startups.
Binance aims to use $1 billion of its own capital to create a combination of a fund of funds and a direct fund that invests in blockchain projects.
Magnifying glass on map image via Shutterstock