A $1.6 billion (10 billion CNY) government-backed blockchain fund, dubbed Xiong’An Global Blockchain Innovation Fund, was launched Monday in Hangzhou, a Chinese city noted for its vigorous support for the fintech industry and which is home to the e-commerce giant Alibaba.

The initiative was announced at the opening ceremony of the Hangzhou Blockchain Industrial Park, which will act as an incubation center for blockchain startups from around the globe.

Xiong’An Global Blockchain Innovation Fund was jointly funded by the Yuhang District Government, the Future Science and Technology City Administrative Committee and Hangzhou-based venture capital firm Tunlan Investment, which will manage the fund. 30 percent of the funding, namely $480 million, comes from government-guided funds to invest in promising blockchain projects.

Bob Xu , founder of Zhenge Fund and a well-known angel investor will serve as an adviser for the new fund. Two partners at INBlockchain, Li Xiaolai, a Chinese bitcoin tycoon and Lao Mao, the chief executive of Big.on and a well-recognized figure in the crypto space, will be managers of the fund.

First ten blockchain startups from several countries, including those focusing on blockchain community engines, digital asset trading services, blockchain cloud computing platforms, blockchain-focused news media, successfully “contracted” at the opening ceremony and will move to the Hangzhou Blockchain Industrial Park. Zhejiang Xiong’An Blockchain Strategic Development Research Institute was also founded.The three blockchain-related entities—-the industrial park, the innovation fund and the research institute—-will be coordinated to offer academic and financial support for the development of blockchain industry in Hangzhou.

The new fund marks the latest effort from the municipal government of Hangzhou in striving to build the city as the Blockchain Capital of China. On February 4 2018, Hangzhou included the “blockchain” in the government work report for the first time, aiming to speed up the cultivation of future industries such as AI, virtual reality, blockchain, quantum technology and commercial aerospace. And in the 2017 Global Enterprise’s Blockchain Patent Ranking (Top 100) released by IPRdaily in February, Hangzhou-based enterprises accounted for over 10% among 1060 pieces of blockchain patents with Alibaba topping the ranking.

Besides, Hangzhou-based China Banknote Blockchain Technology Research Institute, a research institute under the People’s Bank of China (PBoC), has launched a blockchain-as-a-service (BaaS) platform for registry in March.