Abu Dhabi-based investment group MGX has made a landmark $2 billion investment in Binance, the world’s largest cryptocurrency exchange. This move, announced by both companies on Wednesday, further deepens the connection between Binance and the United Arab Emirates.
The investment, which Binance described as its first institutional backing, ranks among the largest ever in the cryptocurrency industry. MGX will become a minority shareholder in Binance following the deal, which was conducted through stablecoin—a type of cryptocurrency tied to traditional currencies like the US dollar.
While details on the specific stablecoin used or the extent of MGX’s governance rights were not disclosed, both companies declined to provide further comment on these aspects. Binance, founded in 2017 by Changpeng Zhao in China, has grown rapidly to dominate the global cryptocurrency trading market, riding the wave of increased demand for digital currencies such as Bitcoin.
Zhao, commonly known as “CZ,” had previously admitted to breaching US anti-money laundering laws, resulting in his imprisonment last year. Since his departure, Binance’s new leadership under Richard Teng, formerly head of Abu Dhabi’s Financial Services Authority, has been strengthening ties with the UAE.
In its announcement on Wednesday, Binance highlighted its significant presence in the UAE, employing approximately 1,000 of its global 5,000-strong workforce there. The investment marks MGX’s first public venture into cryptocurrency.
Founded a year ago, MGX was set up with the mission of accelerating innovation in artificial intelligence and advanced technologies through strategic partnerships.
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