Banks lead investments in JAM FINTOP blockchain fund

More than a dozen banks are investing in a blockchain-dedicated fund from a Jacobs Asset Management affiliate and FINTOP Capital.

JAM Special Opportunity Ventures and FINTOP Capital announced Jan. 10 the first closing of the blockchain investment fund at approximately $110 million, plus additional commitments of up to $30 million. The fund has a cap of $200 million. In April 2021, the same entities announced the JAM FINTOP Banktech fund, which was designed to accelerate the adoption of financial technology at banks.

The new fund, named JAM FINTOP Blockchain, will initially focus on investments in financial infrastructure developers that leverage blockchain technologies. Ideal investment targets will help banks deploy blockchain-enabled applications in lending, payments and exchanges.

Strategic lead investors of the JAM FINTOP Blockchain fund included fintech firm Figure Technologies Inc., as well as more than a dozen banks: Amerant Bancorp Inc., Atlantic Union Bankshares Corp., Banner Corp., ConnectOne Bancorp Inc., FB Financial Corp., First Horizon Corp., New York Community Bancorp Inc., OceanFirst Financial Corp., Piper Sandler Cos., Simmons First National Corp., Synovus Financial Corp., Sterling Bancorp and Umpqua Holdings Corp.

Figure Technologies' CEO Mike Cagney and Piper Sandler's Digital Assets Group will be strategic advisors to the fund.