MGX Announces $2 Billion Investment in Binance, Shaping Crypto Future

SAN ANSELMO, California — Emirati state-owned investment firm MGX has revealed a monumental $2 billion investment in Binance, marking the cryptocurrency exchange’s first significant institutional backing and the largest investment ever made in crypto.

This strategic minority stake will be financed in stablecoins, setting a precedent for cryptocurrency investments. Stablecoins are digital assets designed to maintain a steady value, typically linked to a fiat currency, making this investment notable both in size and payment method.

Launched last year, MGX focuses on innovative technologies and has joined forces with major players to establish a $30 billion AI fund. Until now, however, the firm had not ventured into the cryptocurrency and blockchain sectors.

“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 a press statement. “By partnering with the leading industry player, MGX aims to enable innovation at the intersection of AI, blockchain technology, and finance.”

Neither Binance nor MGX commented on the exact size of the stake acquired or which stablecoin will be utilized for the transaction. Additionally, Binance has not responded to inquiries regarding whether the investment deal has been finalized.

As part of the United Arab Emirates’ broader ambition to become a leading hub for technology and finance, the country continues to enhance its position in the rapidly evolving cryptocurrency market. Binance, which is the world’s largest cryptocurrency exchange, faces ongoing regulatory challenges globally but remains committed to its operations in the UAE.

The firm’s press release indicated that Binance employs around 1,000 of its total 5,000 global workforce within the UAE, reflecting its significant presence in the region. With more than 260 million registered users and surpassing $100 trillion in cumulative trading volume, Binance commands a substantial share of the crypto market.

In further developments, Binance CEO Richard Teng is scheduled to appear at a panel session during CNBC‘s CONVERGE LIVE in Singapore at 2:40 p.m. local time (2:40 a.m. ET) on Thursday, adding to the excitement surrounding the firm’s latest investment initiative.