MGX Acquires Minority Stake in Binance with $2B Crypto Deal

• Binance secures a $2 billion investment from UAE’s MGX, its first institutional funding.  
• The deal, paid in stablecoins, marks the largest crypto-only investment in history.  
• MGX aims to drive blockchain innovation, strengthening ties between AI, finance, and crypto.

Binance has secured a $2 billion investment from MGX, a state-owned investment firm based in Abu Dhabi. This marks the first institutional investment in Binance and the largest single investment ever paid in cryptocurrency. The transaction was completed using stablecoins, adding another milestone to the history of crypto-based funding.

MGX, known for its involvement in artificial intelligence and technology, sees blockchain as a crucial part of the future. The company has backed major AI projects, including OpenAI and Elon Musk’s xAI. Its chairman, Tahnoon bin Zayed Al Nahyan, plays a significant role in Abu Dhabi’s technology and finance strategy.

Richard Teng, Binance’s CEO, welcomed the investment, stating that it strengthens Binance’s efforts to build a secure and compliant crypto ecosystem. He stated Binance would cooperate with international regulators to develop a robust compliance framework for cryptocurrency policies. Binance remains a global leader in crypto trading with over 260 million users and exceeds $100 trillion in total trading volume.

Changpeng Zhao, Binance’s founder, also commented on the investment on X. He highlighted that this deal is the first time Binance has accepted institutional funding. He also noted that this is the largest investment transaction ever completed entirely in cryptocurrency.

MGX’s CEO, Ahmed Yahia, stated that this investment reflects their belief in blockchain’s transformative power for digital finance. He emphasized that institutional adoption is growing, making secure and scalable blockchain infrastructure more critical than ever.

This investment follows MGX’s recent moves in the technology sector. The firm played a role in the $100 billion “Stargate” AI project alongside SoftBank, Oracle, and OpenAI. It also partnered with BlackRock and Microsoft on a $30 billion initiative to develop AI infrastructure. MGX’s involvement in Binance aligns with its broader strategy to support emerging technologies.

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The exact percentage of Binance shares acquired by MGX has not been disclosed. Neither company has commented on which stablecoin was used for the transaction. However, the deal marks a turning point for Binance as it embraces institutional investment for the first time.

With this partnership, Binance gains not only financial resources but also a powerful ally in the UAE. Binance continues to strengthen its position as a leading global crypto exchange amid industry growth and regulatory shifts. MGX’s backing could help Binance navigate regulatory challenges while expanding its influence in the blockchain industry.

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