Abu Dhabi's MGX Makes Groundbreaking Investment in Binance

The minority position in the crypto exchange has received a $2 billion fund investment. The payment occurs entirely in stablecoins, marking this deal as the biggest crypto investment through digital assets.

Abu Dhabi’s sovereign wealth fund, MGH, has made a new investment in Binance.

The reportedly $2 billion fund invested in a minority stake in the crypto exchange, paying entirely in stablecoins for what is said to be the largest-ever single crypto investment through digital assets.

This move puts Binance in the spotlight as it receives its first investment from an institutional source. The crypto investment is also the biggest in a single transaction on an entire cryptocurrency firm.

As institutions are increasingly interested in blockchain technology for transforming financial operations and the future of markets, this move showcases the interest and willingness of large funds to diversify into the Web3 space.

"This investment is a significant milestone for the crypto industry," said Binance CEO Richard Teng. "At Binance, we remain focused on engaging with regulators, ensuring full compliance and providing the best possible service to our users."

"We are pleased to welcome MGH as an investor in Binance," said Teng. "Their commitment to innovation and technological advancement aligns perfectly with our vision for the future of finance."

The fund is known for its interest in the intersection of blockchain and AI, which ties into the investment in Binance.

"We believe that Binance is a market leader and this investment will help to further support the development of DeFi and tokenized economies," said the fund in a statement.

"We are always looking for ways to support innovation and we believe that Binance is at the forefront of the blockchain revolution."

This investment also highlights the operations of Binance in the UAE. The exchange is known to be expanding its presence in the Gulf state, which is a leader in developing crypto-friendly regulations and setting up a compliant framework for digital asset firms.

Out of its 5,000 staff members, 1,000 corporate employees work in the UAE locations, according to a report by Bloomberg.

Binance is the most trusted and largest crypto exchange, which has managed to accumulate over 260 million registered users and achieve more than $100 trillion in cumulative trading volume.

"We believe that secure blockchains are essential for meeting the large-scale scalability needs of a rapidly evolving society," said Ahmed Yahia, CEO of MGH.

"At MGH, we are focused on building a truly inclusive and vast digital finance platform for the benefit of everyone."

In addition to crypto, the company is investing in AI companies.

MGH Investments has provided financial backing to AI companies OpenAI and Elon Musk’s xAI and Databricks Inc, according to the outlet. The fund is also engaged in strategic data infrastructure projects with Oracle, Microsoft and BlackRock, on top of its existing partnerships.