Binance Secures Record $2 Billion Investment from Abu Dhabi’s MGX
Binance, the world’s largest crypto exchange, announced a landmark $2 billion investment from Abu Dhabi’s state-backed fund MGX. The deal – Binance’s first-ever institutional capital raise – gives MGX a minority equity stake and ranks among the largest investments in crypto industry history. Notably, the funding was provided entirely in stablecoin cryptocurrency rather than cash, underscoring the investors’ comfort with digital assets.
- Major Funding Round: Abu Dhabi’s MGX is injecting $2 billion into Binance, the exchange’s first institutional funding round.
- Minority Stake: MGX will become a minority shareholder in Binance through this deal, which was paid in dollar-pegged stablecoins.
- Institutional Interest: This marks MGX’s first foray into crypto investment, signaling growing institutional and sovereign interest in the digital asset sector.
Partnering with MGX strengthens Binance’s ties to the United Arab Emirates’ crypto-friendly environment. The exchange already has a substantial presence in the UAE, with roughly 1,000 out of its 5,000 global employees based there. The UAE government, for its part, is actively aiming to become a “global centre for digital assets” and has been attracting major crypto firms to set up shop locally as part of its economic diversification plan. Binance’s CEO Richard Teng (a former Abu Dhabi regulator) lauded the investment as a “significant milestone for the crypto industry and for Binance”, emphasising the company’s commitment to building a compliant and innovative digital finance ecosystem in tandem with supportive jurisdictions.
