According to recent reports, a Singapore-based venture known by the name of Life.SREDA will launch a fund meant to encourage banks from all around the world to invest into blockchain startups.
In return, Life.SREDA hopes that early-state blockchain companies will get access to start-up capital, needed to establish their services on the market, thus further promoting the possibilities of blockchain technology.
The venture fund that has been named ‘Banking on Blockchain Fund’, or ‘BBFund’ has the initial capital of $5 million, courtesy of Life.SREDA. The venture now hopes that the fund will get financial backing from multiple institutions, to achieve their goal of reaching $50 million by the end of the current year and $100 million by 2017.
In a recent press statement, a representative from Life.SREDA said that: “This year will see a big shift to acceptance and adoption of blockchain technologies with people using it without realizing it (…) You’ll do a money transfer and you won’t realize that the company sending that money is actually using a blockchain trail. (…) Banks need to know which of the startups have the best business model; which ones are developing relevant use cases — and finally, which ones they should invest in and partner with.” It added saying, “The new fund will give all banks an avenue through which they can gain exposure to the rapidly-growing blockchain space.”
Reports also indicate that the fund will begin investing into blockchain startups following its very first closure in the third quarter of 2016. Other than being offered access to investment returns and analytics, the financial institutions backing the project will also get access to research studies carried out by a large portfolio of companies, to further facilitate investments.
Based on everything that has been outlined so far, what do you personally think about the effort being put in by Life.SREDA to encourage blockchain investments? Let us know your thoughts in the comment section below.
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