Abu Dhabi’s investment company MGX invested $2 Billion in crypto exchange Binance in one of the latest major institutional investment deals in the crypto space.
According to the exchange's announcement today (Wednesday), the transaction is structured entirely in stablecoins and marks one of Binance’s major institutional backings as the UAE boosts its involvement in the digital asset space.
“As institutional adoption accelerates, the need for secure, compliant, and scalable blockchain infrastructure and solutions has never been greater. Binance has long been a driving force in cryptocurrency innovation, from exchange technology and tokenization to staking and payments,” said Ahmed Yahia, the Managing Director and CEO of MGX.
We are excited to announce the first-ever institutional investment in Binance by @mgx_ai. This is a significant step in advancing digital asset adoption and reinforcing blockchain’s role in global finance. The $2B investment is also the single largest investment into a crypto… pic.twitter.com/fjZQBqSyC4
— Binance (@binance) March 12, 2025
Minority Stake in Binance
The deal makes MGX a minority shareholder in the world’s largest crypto exchange, although Binance has not disclosed specific details regarding governance rights or the type of stablecoin used.
The investment comes as Binance deepens its connections with the UAE under CEO Richard Teng, who succeeded Changpeng Zhao(CZ) following his legal troubles in the U.S.
Teng previously led Abu Dhabi’s Financial Services Authority and has overseen Binance’s growing presence in the region. The UAE has been positioning itself as a global leader in digital assets, aiming to attract top crypto firms as part of its economic diversification strategy.
“This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance. Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection,” Teng commented.
MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, has also invested in AI-focused companies like OpenAI and Elon Musk’s Xai, Reuters reported.
Institutional Crypto Investment
The deal comes amid a resurgence in the crypto market, with Bitcoin reaching all-time highs after recent political developments in the U.S. Binance, despite facing regulatory scrutiny, continues to seek a global headquarters to enhance transparency. In the past year, the exchange settled U.S. legal cases with a $4.3 billion fine and is under investigation in France for alleged financial misconduct.
The MGX investment represents a milestone for Binance, signaling a shift toward institutional backing in the crypto industry. With regulatory challenges still looming, the partnership with an Abu Dhabi-backed entity could offer Binance a more stable footing in the evolving digital finance landscape.
As Binance navigates regulatory pressures and market shifts, the $2 billion investment underscores both its resilience and the UAE’s deepening role in shaping the future of crypto.
This article was written by Jared Kirui at www.financemagnates.com.
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