MGX, the Abu Dhabi owned investment firm has announced $2B cryptocurrency investment deal into Binance. This crypto exchange investment deal was inked on Wednesday, making the ties stronger between Binance and UAE. Emirati state-owned investment firm MGX investment into Binance marks the cryptocurrency exchange’s first institutional investment and the “single largest investment” ever paid in crypto.
Binance and Abu Dhabi MGX’s investment deal
Both the firms stated in a joint press release that the minority stake would be paid for in stablecoins. This would be “largest investment ever” to be paid in cryptocurrency. Stablecoins are a type of digital asset designed to hold a constant value, mostly with peg to a fiat currency.
Both MGX and Binance declined to comment.
MGX’s focus on AI technology
Abu Dhabi’s MGX investment launched the frim to develop AI technology in 2024. In September, AI fund of more than $30B was invested by MGX in partnership with BlackRock and Microsoft. Though MGX has not yet invested in the cryptocurrency industry and blockchain sectors.
“MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” Ahmed Yahia, managing director and CEO at MGX, said in a statement.
As part of the UAE’s broader ambitions to become a global technology leader, it has been growing into a regional crypto hub.
The press release added, “By partnering with the leading industry player, MGX aims to enable innovation at the intersection of AI, blockchain technology and finance.”
Binance growing footprints in UAE
As it faces regulatory hurdles and enforcement measure in other jurisdictions, Binance has grown its Middle East footprint.
Founded in 2017 in China by billionaire Changpeng Zhao, Binance grew into the world’s biggest crypto exchange after tapping into soaring demand for trading bitcoin and other cryptocurrencies.
The exchange has been growing its links with the UAE.
According to the press release, Binance employs approximately 1,000 of its roughly 5,000 global workforce in the UAE. It adds that it now boasts over 260 million registered users and has surpassed $100 trillion in cumulative trading volume.
MGX funding deal with Binance
MGX’s investment in Binance is its first public foray into crypto. Aiming to be the global centre for digital assets UA is trying to attract some of the biggest firms to build locally as part of a plan to diversify its economy.
Richard Teng, the head of Binance said, “This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance”.
Other investments by MGX
Other investments by MGX includes OpenAI and Elon Musk’s Xai.
