The investment will help MGX enter the cryptocurrency industry and aims to increase the adoption of digital assets.
MGX announced that it has invested $2 billion in Binance, strengthening the relationship between the United Arab Emirates (UAE) and the biggest cryptocurrency exchange in the world.
MGX Fund Management Limited (MGX) is an investment firm for artificial intelligence (AI) technologies, established by the government of Abu Dhabi in 2024.
The company has purchased a minority share in Binance. This MGX deal is the biggest investment ever made in the crypto industry, especially stablecoin.
Stablecoin is a kind of cryptocurrency that is a fiat currency like a dollar.
A Binance representative declined to comment regarding the negotiated governance rights, the size of MGX’s shares, or the stablecoin used for the investment.
The investment will help MGX enter the blockchain and cryptocurrency industries and aims to increase the acceptance of digital assets.
Ahmed Yahia, managing director and CEO of MGX, stated that the company invested in Binance to show its dedication to promoting blockchain revolutionary potential in digital finance.
He adds that as institutions adopt blockchain, there is a greater demand for safe, legal, and scalable blockchain solutions. Their goal is to build a more inclusive and robust digital finance ecosystem.
Binance, established in 2017 in China by billionaire Changpeng Zhao, became the largest cryptocurrency exchange globally after capitalizing on the growing demand for trading bitcoin and other cryptocurrencies.
Last year, Zhao, often known as CZ, spent months behind bars after pleading guilty to breaking US laws against money laundering at Binance.
Richard Teng, CZ’s successor and a former head of Abu Dhabi‘s Financial Services Authority, is growing the exchange’s links with the United Arab Emirates.
Binance announced that it has a substantial footprint in the United Arab Emirates, employing around 1000 out of its 5000 employees. It has over 260 million registered users and over $100 trillion in global cumulative trading.
MGX was founded over a year ago to accelerate the development and adoption of artificial intelligence (AI) and advanced technologies through partnerships.
The UAE is attempting to become the global hub for digital assets like cryptocurrency and has been trying to attract some of the largest companies to establish locally as part of its plans to diversify its economy.
Sheikh Tahnoon bin Zayed Al Nahyan, the national security adviser for the United Arab Emirates and the brother of UAE President Sheikh Mohammed bin Zayed, chairs MGX, which has also invested in OpenAI and Elon Musk’s xAI. Mubadala, a $330 billion state-owned wealth firm in Abu Dhabi, is a partner in MGX.
The cryptocurrency market has enjoyed a comeback in the past year after a series of crashes and scandals in 2022 that exposed widespread misconduct and left investors with significant losses.
Bitcoin, the largest cryptocurrency, reached a new all-time high after US President Donald Trump, who advocated for cryptocurrency, won the election.
A federal judge in Washington, DC, agreed to halt the US Securities and Exchange Commission’s legal case against Binance for 60 days, approving the regulator’s request and the world’s biggest bitcoin exchange.
Teng stated that Binance is still looking for a location to set up its global headquarters to improve transparency after criminal charges against CZ and a $4.3 billion fine Binance agreed to pay in 2023 in the US.
French investigators announced in January that they have launched a judicial investigation into money laundering, tax evasion, and other offenses at Binance. The company denied the accusations.
Teng assured that the MGX investment would be a turning point for Binance and the cryptocurrency industry. Both companies are working together to share the future of digital currency.