Dubai, UAE – Abu Dhabi-backed investment firm MGX has made a landmark $2 billion cryptocurrency investment in Binance, marking one of the largest institutional deals in the crypto sector. The move deepens ties between the world’s largest crypto exchange and the United Arab Emirates as the country solidifies its role as a global hub for digital finance.
A Strategic Partnership in the Crypto Industry
The investment, which Binance described as its first institutional funding, grants MGX a minority stake in the company. The deal was conducted in stablecoin—a cryptocurrency pegged to traditional fiat currencies such as the U.S. dollar—though details on the specific stablecoin and MGX’s governance rights remain undisclosed.
Founded in 2017 by billionaire Changpeng Zhao, Binance has grown into the leading global crypto exchange. Nonetheless, the business has been under legal scrutiny, including Zhao’s guilty plea to U.S. anti-money laundering offenses, which resulted in changes to the company’s leadership. Binance, which employs about 1,000 people out of a worldwide workforce of 5,000, has been fortifying its relations with the United Arab Emirates under its new CEO, Richard Teng.
MGX, which was established a year ago to accelerate AI and advanced technology development, has also invested in OpenAI and Elon Musk’s xAI. The firm is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a key figure in Abu Dhabi’s economic diversification strategy. Its partnership with Abu Dhabi’s $330 billion sovereign wealth fund, Mubadala, further cements its influence in the region’s financial sector.
UAE’s Push for Global Crypto Leadership
The UAE has been actively positioning itself as a leading hub for digital assets, attracting major crypto firms as part of its broader economic diversification plans. MGX’s investment in Binance signals the country’s continued commitment to blockchain innovation and financial technology.
“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.
The crypto market has experienced a resurgence following regulatory clarity and increased institutional adoption. Bitcoin recently hit all-time highs, boosted by the pro-crypto stance of former U.S. President Donald Trump. Meanwhile, Binance has been navigating global regulatory challenges, including a $4.3 billion settlement in the U.S. and an ongoing judicial probe in France.
Binance’s Global Expansion Amid Regulatory Scrutiny
Despite past legal setbacks, Binance continues to expand its global presence. A U.S. federal judge recently paused the SEC’s civil lawsuit against Binance for 60 days, adding to speculation about a potential settlement. Additionally, Binance remains on the lookout for a global headquarters as part of its push for greater regulatory transparency.
“This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance,” said Binance CEO Richard Teng.
With MGX’s backing, Binance strengthens its foothold in the UAE and reinforces its position as a dominant player in the evolving digital asset landscape.
