Abu Dhabi’s state-owned investment firm MGX has made a landmark $2 billion investment in Binance, marking the cryptocurrency exchange’s first institutional funding and the largest-ever investment in crypto paid entirely in digital assets.
In a joint statement, MGX and Binance confirmed that the minority stake would be paid in stablecoins, a class of cryptocurrencies designed to maintain a stable value by pegging to traditional fiat currencies.
The investment highlights MGX’s strategic push into the blockchain space, following its focus on artificial intelligence (AI) and high-tech sectors.
Launched last year, MGX has already forged major partnerships, including a $30 billion AI fund with BlackRock and Microsoft.
However, this investment marks its first venture into the cryptocurrency and blockchain industries.
“MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” said Ahmed Yahia, managing director and CEO of MGX.
The firm emphasized that this partnership aims to foster innovation at the intersection of AI, blockchain, and financial technology.
Neither MGX nor Binance disclosed the exact size of the stake or the specific stablecoin used in the transaction.
Binance has yet to confirm whether the deal has been finalized, CNBC reported.
The UAE has been aggressively positioning itself as a leading player in the digital economy, with Abu Dhabi and Dubai emerging as key hubs for crypto and blockchain innovation.
Binance, the world’s largest cryptocurrency exchange, has significantly expanded its presence in the Middle East amid increasing regulatory challenges in other regions.
According to Binance, around 1,000 of its 5,000 global employees are based in the UAE.
The exchange also reported surpassing 260 million registered users and exceeding $100 trillion in cumulative trading volume.
MGX’s backing of Binance signals growing institutional confidence in crypto’s long-term potential and aligns with the UAE’s broader strategy to become a leader in emerging financial technologies.
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