The world's largest cryptocurrency exchange platform, Binance, received a $2 billion investment from Emirati state-owned investor MGX on Wednesday.
The investment, disbursed using stablecoin, marks the single largest investment into a crypto company and the largest investment paid in crypto, according to the release.
"This investment by MGX is a significant milestone for the crypto industry and for Binance," said Richard Teng, Binance CEO, in a statement. "Together, we are shaping the future of digital finance. Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security and user protection."
MGX was established last year by the government of Abu Dhabi in the United Arab Emirates to invest in artificial intelligence projects and companies. The fund is a collaboration between Abu Dhabi sovereign wealth fund Mubadala Investment Company PJSC and the private artificial intelligence company Group 42 Holding Ltd. When MGX debuted in March 2024, it said it aimed to manage $100 billion in assets.
The firm states its goal is "accelerating the development and adoption of AI and advanced technologies" through partnerships in the UAE and globally. MGX previously worked with BlackRock and Microsoft to form the Global AI Infrastructure Investment Partnership and in January partnered with OpenAI and Oracle on the Stargate Project.
This investment marks MGX's first foray into cryptocurrency. With the $2 billion, it now has a minority stake in Binance. Ahmed Yahia, managing director and CEO of MGX, said in a statement that the investment is a step forward in the company's goal of advancing AI, blockchain technology and finance. Yahia noted Binance's history of "cryptocurrency innovation" on many fronts — from exchange technology and tokenization to staking and payments.
The startup announced over $20 million in funding in January and plans to launch in the second quarter of 2025.
"MGX's investment in Binance reflects our commitment to advancing blockchain's transformative potential for digital finance," Yahia said. "As institutional adoption accelerates, the need for secure, compliant, and scalable blockchain infrastructure and solutions has never been greater."
Binance already has a significant presence in the UAE with nearly one-fifth of its 5,000 person global workforce based in the country. Teng previously served as CEO of the Abu Dhabi Financial Services Authority and worked to build one of the world's first cryptocurrency regulatory frameworks.
The exchange is the largest in the world. Its trading volume globally is equivalent to several of the next largest cryptocurrency exchanges — like Bybit and Coinbase — combined. The company states it has more than 260 million registered users and over $100 trillion in cumulative trading volume.
"Binance remains committed to working with regulators worldwide to establish transparent, responsible and forward-thinking policies for the crypto industry," Teng said. "Our ongoing investments in security and compliance reinforce our mission to foster a secure and trusted digital financial ecosystem."
Binance was founded in 2017 in China but has moved headquarters several times. The company ran afoul of U.S. regulatory agencies and was banned in the U.S. in 2019. With backing from other investors, Binance launched the separate exchange Binance.US later that year to comply with U.S. laws.
