Cryptocurrency exchange Binance has secured a $2bn investment from MGX, a technology investor headquartered in Abu Dhabi, UAE.
This transaction marks the first institutional investment in Binance and stands as the largest single investment ever received by a company within the cryptocurrency sector. Specifically, it is also the most significant amount paid using stablecoins.
This deal signifies MGX’s initial entry into the cryptocurrency and blockchain sectors as it acquires a minority stake in Binance. The collaboration aligns with MGX’s strategy to support blockchain technology’s ongoing societal transformation.
By joining forces with Binance, MGX aims to drive advancements where artificial intelligence (AI) converges with blockchain and finance.
Binance is a global platform for cryptocurrency trading, which is claimed to have over 260 million users in more than 100 countries.
It offers multiple services, ranging from trading and finance to education and other digital solutions. Binance’s goal is to enhance financial accessibility worldwide through the use of cryptocurrency.
Binance CEO Richard Teng 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. Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection.
“Binance remains committed to working with regulators worldwide to establish transparent, responsible, and forward- thinking policies for the crypto industry. Our ongoing investments in security and compliance reinforce our mission to foster a secure and trusted digital financial ecosystem.”
MGX focuses its investments on accelerating developments in AI and related technologies through global partnerships, particularly in the UAE. The company invests across various sectors such as semiconductors, infrastructure, software, tech-enabled services, life sciences, and AI applications.
Binance employs around 1,000 people in the UAE, part of its approximately 5,000 global staff, indicating its presence in the region. The company has a significant trading volume and user base, with cumulative trading exceeding $100 trillion.
The investment by MGX is intended to support AI-driven blockchain projects and encourage developments in decentralised finance (DeFi) and the digital economy.
MGX managing director and CEO Ahmed Yahia said: “MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance.
“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.
“Together, we are committed to building a more inclusive and robust digital finance ecosystem.”
