Hong Kong-based blockchain gaming giant Animoca Brands announced a $50 million investment on Monday through a new partnership with the NEOM Investment Fund that will focus on Web3 initiatives.

NEOM is the investment arm of a region in northwest Saudi Arabia that’s being built as a “living laboratory” for technology and innovation.

Animoca Brands reached a $6 billion valuation in July 2022. However, the increased market turbulence following the collapse of FTX that November led to Animoca cutting the target for its new metaverse fund from $2 billion to $1 billion, and then reportedly down to $800 million.

Under the partnership, Animoca and NEOM will collaborate on building Web3 enterprise service capabilities that will support the technological advancements in Riyadh and the NEOM region. The duo will establish a hub in NEOM to nurture local Web3 projects.

“We are honored and excited to partner with and receive investment from NEOM, one of the world’s most ambitious projects seeking to use innovation and technology to redefine how we live, work, and play,” said Yat Siu, co-founder and executive chairman of Animoca Brands, in the announcement post. “We have always referred to the growth of the Web3 ecosystem as the emergence of a new meta-nation, and now NEOM could well become the first region to fully harness the power of blockchain.”

The new NEOM investment will be split evenly between the issuance of Animoca convertible notes and the purchase of Animoca shares on the secondary market.