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Binance, the world’s largest cryptocurrency exchange, has received a landmark $2 billion investment from MGX, an Abu Dhabi-backed sovereign wealth fund. This marks Binance’s first-ever institutional investment and the largest cryptocurrency-based investment in history.
In a joint statement, Binance and MGX confirmed that the minority stake acquisition was completed using stablecoins, though they did not disclose the specific cryptocurrency used for the transaction.
Strengthening UAE’s Crypto and AI Vision
The deal aligns with the United Arab Emirates’ (UAE) strategic push to become a global leader in digital assets and blockchain technology. Binance, which has faced regulatory challenges in multiple jurisdictions, has significantly expanded its operations in the UAE, employing around 1,000 of its 5,000 global staff in the region.
Ahmed Yahia, Managing Director and CEO of MGX, emphasized the firm’s commitment to the blockchain industry. “MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” he stated.
While MGX has primarily focused on artificial intelligence investments—including a $30 billion AI fund in partnership with BlackRock and Microsoft—this deal marks its entry into the crypto sector.
Binance’s Growing Ties with the UAE
The investment deepens Binance’s presence in the Middle East. The exchange, which has over 260 million registered users and a cumulative trading volume exceeding $100 trillion, has been considering the UAE as a potential location for its headquarters.
Binance CEO Richard Teng, who previously led Abu Dhabi’s Financial Services Authority, has played a crucial role in strengthening ties with the region’s regulators and investors.
With the UAE actively positioning itself as a global crypto hub, this deal signals a major step forward in integrating blockchain with traditional finance and AI, further solidifying the country’s standing in the global digital economy.
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