One of the largest investments in cryptocurrency history! Middle Eastern consortium invests $2 billion in stablecoins for Binance

Wallstreetcn
2025.03.13 05:48
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This transaction is not only Binance's first acceptance of institutional investment but also the largest scale cryptocurrency-related investment ever completed using stablecoins

Binance welcomes a historic moment, accepting institutional investment for the first time.

According to reports from foreign media on March 12, the world's largest cryptocurrency exchange, Binance, recently announced a $2 billion investment from the Abu Dhabi-backed investment group MGX. This transaction marks not only Binance's first acceptance of institutional investment but also the largest cryptocurrency-related investment ever completed using stablecoins.

This deal will grant MGX a minority stake in Binance, and both parties expect to collaborate to promote the development of blockchain technology, artificial intelligence solutions, decentralized finance, and tokenized digital economies.

As a leading global cryptocurrency exchange, Binance has over 260 million registered users and a cumulative trading volume exceeding $100 trillion. It is reported that Binance has a "significant presence" in the UAE, employing around 1,000 staff, with a total global workforce of about 5,000.

In recent years, Binance has been actively seeking compliance transformation to adapt to the increasingly stringent regulatory environment worldwide. Although Binance has faced investigations by the U.S. Securities and Exchange Commission (SEC) due to regulatory issues, with the shift in the U.S. cryptocurrency regulatory stance, Binance's operations in the U.S. market are gradually recovering, and its U.S. subsidiary has reopened dollar deposit and withdrawal services.

Abu Dhabi's Cryptocurrency Ambitions

Behind this investment is the UAE's ambition to vigorously develop the cryptocurrency industry.

Abu Dhabi is actively promoting economic diversification, aiming to become a global digital asset hub. MGX, as an Abu Dhabi-backed investment group, aligns its investment goals closely with the UAE's national strategy.

Notably, the chairman of MGX is Al Nahyan, the UAE's national security advisor, who is the brother of the UAE president, and the Abu Dhabi state-owned $330 billion wealth fund Mubadala is also a partner of MGX.

For MGX, this marks its first public entry into the cryptocurrency sector. Established a year ago, MGX aims to accelerate the development and adoption of artificial intelligence and advanced technologies through collaboration. In addition to Binance, MGX has also invested in OpenAI and Musk's xAI.

MGX CEO Ahmed Yahia stated:

Institutional adoption of digital finance is accelerating. Binance has led innovations in exchange technology, tokenization, staking, and payments. We are committed to building a more inclusive and robust digital financial ecosystem together

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