Binance Kicks Off $1 Billion Fund For BSC Growth And Adoption

Binance announced a billion-dollar fund to promote the adoption of Binance Smart Chain (BSC) and its growth in the broader blockchain industry.

The crypto exchange believes that funding, with good partnerships spanning industry-leading organizations, will dramatically expand blockchain technology and see it widely adopted for real-world use cases.

The goal is to accelerate the growth of the Binance Smart Chain and drive the massive adoption of cryptocurrency, Bloomberg reported.

Binance said in a statement that it wants to see the BSC ecosystem grow to encompass projects in decentralized finance (DeFi), gaming and social media, among other sectors poised to disrupt traditional systems.

Gwendolyn Regina, director of investments at Binance Smart Chain Accelerator Fund, said the fund's primary goal is to stabilize the global adoption of cryptocurrencies and blockchain technology.

"With the billion-dollar initiative, our goal will be broadened to build cross-chain and multi-chain infrastructure integrated with different types of blockchains," Regina said, as per Reuters.

According to Changpeng Zhao, CEO of Binance, "The massive adoption of digital assets in the world" could grow the Binance smart chain "to become the first blockchain ecosystem with 1 billion users."

Binance will divide $1 billion into four investment parts.

A total of $100 million will be spent on talent development, the beneficiaries of which will be developer communities, academic institutions and blockchain-focused R&D projects. The next part of the investment includes another $100 million, which will be invested in a liquidity incentive program to encourage liquidity providers in DeFi projects hosted by the BSC.

Binance has also committed an additional $300 million to a builder program, which includes $200 million set aside for an incubator project targeting 100 decentralized applications (dApps). The remaining $500 million, goes to an investment and incubation program.

According to Binance, these funds are intended to accelerate the adoption of DeFi and other sectors, including games, decentralized computing, metaverse, AI and virtual reality.

The billion-dollar investment came just over a year after Binance committed $100 million to DeFi projects built on the exchange's BSC platform. During this period, BSC has attracted more than 100 million users, Changpeng Zhao said in the press release.