Binance becomes latest crypto company to launch venture fund

As venture firms launch dedicated funds for crypto investments, more crypto exchanges and companies are launching their own venture funds.

Binance, one of the world’s most active cryptocurrency exchanges, according to coinmarketcap.com, is the latest crypto company to move into venture investing. On May 31, the company announced that it is launching a $1 billion fund using its own token called BNB to invest in blockchain projects.

The exchange has also launched Binance Labs, a technology incubator to focus on pre-ICO projects.

In April, Hong Kong court documents revealed that Binance and a Sequoia Capital Chinese fund are engaged in a dispute over potential violation of an exclusivity agreement.

Initial coin offerings have drawn billions in investments to the blockchain sector, but the industry’s technology is fledgling. That has prompted platforms to invest in startups that will build out the blockchain ecosystem.

Other blockchain companies and exchanges to launch their own venture funds or studios in the past year include trading platform Coinbase, settlement company Ripple, blockchain protocol Rchain, and ethereum-based software company Consensys.