Binance the world’s largest cryptocurrency exchange, has acquired a record $2 billion investment from MGX
Binance, the world’s largest cryptocurrency exchange, has acquired a record $2 billion investment from MGX, an Abu Dhabi-backed sovereign wealth fund. This is Binance’s first institutional investment and the largest cryptocurrency-related investment in history.
Binance and MGX stated in a joint statement that the minority interest acquisition was completed with stablecoins, but did not specify which cryptocurrency was used in the transaction.
Strengthening the UAE’s Crypto and AI Vision
The deal is consistent with the UAE’s strategic goal of becoming a global leader in digital assets and blockchain technology. Binance, which has encountered regulatory issues in several jurisdictions, has dramatically expanded its operations in the UAE, hiring over 1,000 of its 5,000 global employees in the region.
Ahmed Yahia, Managing Director and CEO of MGX, emphasised the company’s commitment to the blockchain industry. “MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” he told me.
While MGX has primarily focused on artificial intelligence investments—including a $30 billion AI fund in partnership with BlackRock and Microsoft—this deal marks its entry into the crypto sector.
Binance’s Growing Relationship with the UAE
The investment strengthens Binance’s foothold in the Middle East. The exchange, which has over 260 million registered users and a cumulative trading volume of more than $100 trillion, is considering establishing its headquarters in the UAE.
Binance CEO Richard Teng, who previously ran Abu Dhabi’s Financial Services Authority, has been instrumental in improving relations with the region’s regulators and investors.
With the UAE actively establishing itself as a worldwide crypto hub, this agreement represents a significant step forward in combining blockchain with traditional banking and artificial intelligence, bolstering the country’s position in the global digital economy.