Marking MGX's first entry into the blockchain and crypto sectors, the technology firm has acquired a minority stake in Binance.
Binance MGX investment
Binance, the world's largest cryptocurrency exchange by trading volume, has recently secured a record-breaking $2 billion investment from the Abu Dhabi-based technology company MGX. As the first institutional investment in the trading platform, the placement is the largest paid in digital assets and stablecoins and the most significant investment in a crypto firm to date.
ADVERTISEMENT
Marking MGX's first entry into the blockchain and crypto sectors, the technology firm has acquired a minority stake in Binance. The Abu Dhabi-based company focuses on driving the adoption and advancement of cutting-edge technologies, with a particular emphasis on artificial intelligence (AI).
To support this mission, MGX has established strategic partnerships both in the UAE and internationally while channeling investments into high-impact sectors where AI can drive large-scale economic transformation. These sectors include software, semiconductors, infrastructure, life sciences, physical AI, and tech-enabled services, reinforcing MGX's commitment to shaping the future of technological innovation.
The deal is part of MGX's broader strategy to expand the impact of distributed ledger technology on society. By collaborating with a leader in the cryptocurrency industry, the technology company aims to foster innovation at the intersection of blockchain, finance, and artificial intelligence.
Binance's funding comes at a time when institutional investment in digital assets is at an all-time high. By the end of February 2025, institutions, companies, and governments had accumulated nearly 15% of Bitcoin's total supply, reaching a record 3.09 million BTC, according to Bitcoin Treasuries. Meanwhile, total inflows into Bitcoin ETFs and trusts have surpassed $106 billion as of March 14, 2025.
Even considering these trends, MGX's $2 billion investment in Binance overshadows the $1.11 billion raised by 137 cryptocurrency firms from venture capitalists in February. According to The TIE's data, the largest deal last month was Strix Leviathan's $79.95 million raise. In comparison, Binance's funding is over 25 times higher, underscoring the record-breaking scale of the transaction.
A Landmark Deal in Crypto
Binance's $2 billion raise not only sets a new record for the crypto industry but also serves as a catalyst for strengthening blockchain's role in global finance and accelerating digital asset adoption. MGX Managing Director and CEO Ahmed Yahia argues that the deal reflects his company's 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 has long been a driving force in cryptocurrency innovation, from exchange technology and tokenization to staking and payments. Together, we are committed to building a more inclusive and robust digital finance ecosystem," Yahia stated.
Binance CEO Richard Teng, who previously served as CEO of the Abu Dhabi Financial Services Regulatory Authority (FSRA), called the $2 billion investment in Binance a "significant milestone" for both the exchange and the digital asset industry.
"Together, we are shaping the future of digital finance. Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection," Teng stated.
"Binance remains committed to working with regulators worldwide to establish transparent, responsible, and forward-thinking policies for the crypto industry. Our ongoing investments in security and compliance reinforce our mission to foster a secure and trusted digital financial ecosystem," Teng added.
According to a press release published on Binance's website, Teng played a critical role in initiating one of the first digital asset regulatory frameworks in the world. His leadership has been instrumental in shaping Binance's regulatory strategy, allowing the exchange to maintain its dominance in the cryptocurrency market with a cumulative trading volume exceeding $100 trillion.
Trusted by over 260 million registered customers across more than 100 nations, Binance continues to lead the industry. In just the last 24 hours, the platform has facilitated nearly $19 billion in spot trades and over $58 billion in derivatives trades, according to CoinMarketCap. Beyond trading, Binance's diverse product portfolio spans finance, payments, education, institutional services, Web3 features, research, and social impact initiatives.
An Important Market for Binance
Recognizing the UAE as a key market, Binance has established a strong presence in the region. The company views the Gulf nation as a hub for innovation and progressive cryptocurrency regulation. Currently, the exchange employs approximately 1,000 people in the UAE, accounting for about 20% of its global workforce of 5,000.
To ensure regulated and compliant services, Binance has secured key regulatory licenses in both Abu Dhabi and Dubai. The exchange's local subsidiaries obtained a Virtual Asset Service Provider (VASP) license in Dubai in April 2024 and a Financial Service Permission (FSP) in the Abu Dhabi Global Market (ADGM) in November 2022.
As institutional investment in digital assets continues to surge, Binance's latest funding from MGX positions it as a central player in the evolving financial landscape. With regulatory clarity improving and institutional demand increasing, the exchange and its investors are set to play a major role in the future of digital finance.
Disclaimer:The information provided on the Website does not constitute investment advice, financial advice, trading advice, or any other form of advice, and you should not interpret any of the Website's content as such. Midday does not recommend that you buy, sell, or hold any cryptocurrency. Please conduct your own due diligence and consult with a financial advisor before making any investment decisions. Midday does not endorse or promote any such activities, and you access them at your own risk, fully understanding the monetary and legal consequences involved. Midday shall not be held responsible for any losses you may incur as a result of using any such apps or websites. Cryptocurrency products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for losses resulting from such transactions.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
