Abu Dhabi-based investment group MGX has invested $2 billion in stablecoin into crypto exchange Binance, marking the largest investment ever made in a crypto company and the largest transaction paid in cryptocurrency. While the specific stablecoin used remains undisclosed, the deal grants MGX a minority stake in Binance.
MGX, known for its focus on AI and advanced technology, sees this investment as its entry into the crypto and blockchain sectors. Binance, which has a significant presence in the UAE, employs around 20% of its 5,000-strong global workforce in the region, citing its “progressive” crypto regulatory environment as a key factor.
Ahmed Yahia, MD and CEO of MGX, stated: “MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance. As institutional adoption accelerates, the need for secure, compliant, and scalable blockchain infrastructure and solutions has never been greater.”
Binance CEO Richard Teng emphasized the company’s focus on compliance and sustainability: “Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection.”
This investment comes after a challenging period for Binance, which faced regulatory scrutiny culminating in a $4.3 billion settlement with US authorities last year. Founder Changpeng “CZ” Zhao also pleaded guilty to violating anti-money laundering requirements and is currently serving a prison sentence.