Emirati state-owned investment firm MGX has announced a groundbreaking $2 billion investment in Binance, marking the cryptocurrency exchange’s first institutional investment and the largest single investment ever made in cryptocurrency. This significant move highlights the growing interest in the digital asset space and the potential of blockchain technology.
In a joint press release, MGX and Binance revealed that the investment will involve a minority stake in the exchange, which will be paid for using stablecoins. This payment method makes it the largest investment ever conducted in cryptocurrency. Stablecoins are digital assets designed to maintain a stable value, typically pegged to a fiat currency, which provides a level of security and predictability in transactions.
MGX was launched in Abu Dhabi last year with a focus on advancing artificial intelligence (AI) technology. In September, the firm partnered with prominent organizations such as BlackRock and Microsoft to establish a substantial AI fund exceeding $30 billion. However, this investment in Binance marks MGX’s first foray into the cryptocurrency and blockchain sectors.
Ahmed Yahia, the managing director and CEO of MGX, expressed the firm’s commitment to leveraging blockchain technology to transform digital finance. He stated, “MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance.” The press release further emphasized that by collaborating with a leading player in the industry, MGX aims to foster innovation at the intersection of AI, blockchain technology, and finance.
While the details regarding the size of the stake and the specific stablecoin to be used for the payment have not been disclosed, both Binance and MGX have yet to comment on whether the deal has been finalized. This investment aligns with the UAE’s broader ambitions to establish itself as a global technology leader and a regional hub for cryptocurrency. In recent years, Binance, the world’s largest cryptocurrency exchange, has been expanding its presence in the Middle East, particularly as it navigates regulatory challenges and enforcement actions in other regions.
According to the press release, Binance employs approximately 1,000 of its total global workforce of around 5,000 in the UAE. The exchange has also reported significant growth, boasting over 260 million registered users and surpassing $100 trillion in cumulative trading volume. This investment from MGX is expected to further enhance Binance’s capabilities and influence in the rapidly evolving cryptocurrency landscape.
