Abu Dhabi-backed investment group MGX has made a $2 billion cryptocurrency investment in Binance, the companies said on Wednesday, deepening ties between the world’s largest crypto exchange and the United Arab Emirates.
The deal, which Binance called its first institutional investment, is one of the largest ever in the crypto industry. It will see MGX become a minority shareholder after making the investment in stablecoin – a type of cryptocurrency pegged to a fiat currency such as the dollar.
A Binance spokesperson declined to comment on “the agreed governance rights” or the size of MGX’s stake, or on which stablecoin was used for the investment.
Binance, founded in 2017 in China by billionaire Changpeng Zhao, 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 under CZ’s successor Richard Teng, who was previously head of Abu Dhabi’s Financial Services Authority.
Binance said in Wednesday’s announcement it had a “substantial footprint” in the UAE, employing around 1,000 of its 5,000 total staff there.
The investment in Binance is the first public foray into crypto by MGX, which was established almost exactly a year ago “to accelerate the development and adoption of AI and advanced technologies” through partnerships, it said at the time.
The UAE is aiming to become a global centre for digital assets including crypto and has been trying to attract some of the biggest firms to build locally as part of a plan to diversify its economy.
“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, in the statement. Blockchain is the technology underpinning cryptocurrencies.
MGX, which has also invested in OpenAI and Elon Musk’s xAI, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security Adviser. Abu Dhabi’s state-owned $330 billion wealth fund Mubadala is a partner in MGX.
The crypto industry has enjoyed a revival in the past year, a turnaround after a series of collapses and scandals in 2022 revealed widespread misconduct and left investors with large losses. The biggest cryptocurrency bitcoin hit new all-time highs following the election of U. President Donald Trump, who has taken a pro-crypto stance.
Teng told Reuters in December that Binance was still looking for a base for its global headquarters.
“This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance,”
