Abu Dhabi-backed investment firm MGX has made a landmark $2 billion cryptocurrency investment in Binance, further cementing ties between the world’s largest crypto exchange and the United Arab Emirates.
The deal, which Binance described as its first institutional investment, is among the largest in the crypto sector to date. As part of the agreement, MGX will become a minority shareholder after investing in stablecoin—a type of cryptocurrency pegged to a fiat currency such as the US dollar.
A Binance spokesperson declined to disclose details regarding “the agreed governance rights,” the size of MGX’s stake, or the specific stablecoin used in the transaction. MGX also refrained from commenting on the specifics of the investment.
Founded in 2017 in China by billionaire Changpeng Zhao, Binance rapidly grew into the world’s largest crypto exchange by capitalizing on surging demand for trading Bitcoin and other digital assets. Under Zhao’s successor, Richard Teng—who previously headed Abu Dhabi’s Financial Services Authority—Binance has expanded its presence in the UAE.
The exchange stated that it now has a “substantial footprint” in the UAE, employing around 1,000 of its 5,000 global staff in the country.
The investment marks MGX’s first publicly disclosed venture into cryptocurrency. Established a year ago, the investment firm aims to “accelerate the development and adoption of AI and advanced technologies” through strategic partnerships. The UAE has been actively positioning itself as a global hub for digital assets, including cryptocurrencies, as part of its broader economic diversification strategy.
“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 statement.
Binance CEO Richard Teng echoed this sentiment, emphasizing the significance of the deal for both parties. “This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance,” he said.
As the UAE continues its push to become a leading player in the digital asset industry, the MGX-Binance partnership underscores the growing institutional interest in cryptocurrency and blockchain technology.
