Huobi is set to launch a $1 billion fund for Chinese blockchain companies. It’s set to provide startups technical and strategical support, and access to software so they can test their products and/or systems.
Huobi Labs, a venture the company plans to launch, is an incubator belonging to the cryptocurrency exchange, Huobi, one of the largest in the world with a daily trading volume of well over $1 billion.
By introducing the $1 billion fund, Huobi seeks to expand its influence within China and across the world. The initiative comes alongside a new strategic cooperation agreement made with Chinese social media company, Tianya. The two companies are seeking to jointly launch a ‘Global Cultural and Creative Blockchain Lab’.
This year, China has announced a more open approach towards international trade, and has proposed the creation of a global free-trade zone in Hainan Province, which is where Huobi and Tianya plan on launching their Blockchain Lab.
The global free-trade zone is expected to come into full effect by 2020, with the Global Cultural and Creative Blockchain Lab being one of the first to take advantage. Huobi’s founder, Li Lin, has outlined the broader aspirations the company has, and its strategic partnership with Tianya.
The incubator in question, Huobi Labs, will see both the capital and vast knowledge of both blockchain technology and China pooled together between the two companies. The decision to place the incubator’s headquarters in Hainan is both to benefit the local economy, and to put Huobi in a commanding position, especially as it transitions into a global free-trade zone.
Earlier this year, Huobi entered the UK, as it established offices in London, while also preparing to set foot in San Francisco. The footholds across continents come as a sign of renewed growth in the wake of the breakdown of a partnership between SBI and Huobi in March.