Abu Dhabi-backed investment group MGX has made a significant move in the cryptocurrency sector, injecting $2 billion into Binance. The deal, announced on Wednesday, represents one of the largest institutional investments in the history of digital assets. As a result, MGX will become a minority shareholder in Binance, having made its investment in stablecoin—a type of cryptocurrency that maintains its value by being pegged to a fiat currency such as the U.S. dollar.
While Binance has confirmed the investment, details regarding MGX’s exact stake and governance rights remain undisclosed. The company has also chosen not to reveal which stablecoin was used in the transaction.
Strengthening Binance’s Presence in the UAE
Founded in 2017 in China by billionaire Changpeng Zhao (CZ), Binance has rapidly grown into the world’s largest cryptocurrency exchange. However, CZ pleaded guilty to violating U.S. anti-money laundering laws and faced jail time last year. His successor, Richard Teng, who previously led Abu Dhabi’s Financial Services Authority, has since been working to expand Binance’s presence in the United Arab Emirates.
Binance now employs around 1,000 of its global workforce of 5,000 in the UAE. The country is positioning itself as a global hub for digital assets and blockchain technology, attracting major players in the industry as part of its broader economic diversification strategy.
MGX’s Strategic Expansion into Crypto
This investment marks MGX’s first public foray into cryptocurrency. Established just a year ago, MGX was created with the mission of accelerating the adoption of artificial intelligence and advanced technologies through strategic partnerships.
“MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” said Ahmed Yahia, Managing Director and CEO of MGX.
MGX has also invested in major tech firms such as OpenAI and Elon Musk’s xAI. The firm is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed. Additionally, Abu Dhabi’s $330 billion sovereign wealth fund, Mubadala, is a key partner in MGX.
A Crypto Revival and Growing Institutional Interest
The cryptocurrency market has seen a resurgence over the past year after a tumultuous period in 2022 marked by high-profile collapses and scandals. Bitcoin has reached record highs, fueled in part by the re-election of U.S. President Donald Trump, who has expressed strong support for the industry.
Meanwhile, Binance continues to navigate regulatory challenges. In February, a U.S. federal judge put a civil lawsuit by the Securities and Exchange Commission (SEC) on hold for 60 days. The exchange also remains under scrutiny in France, where investigators have launched a probe into alleged money laundering and tax fraud.
Despite these hurdles, Binance CEO Richard Teng remains optimistic about the exchange’s future. “This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance,” Teng stated.