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Binance receives $2 billion investment from Abu Dhabi's MGX

Abu Dhabi investment group MGX has invested $2 billion in stablecoin in crypto exchange Binance.

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Binance receives $2 billion investment from Abu Dhabi's MGX

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The deal to buy a minority stake, says Binance, is the largest investment ever in a crypto company and the largest investment ever paid in crypto. The specific stablecoin used has not been disclosed.

For MGX, which has a focus on AI and advanced technology, the agreement represents its entry into the crypto and blockchain sectors.

Binance has a significant footprint in the UAE, basing around 20% of its 5000-strong global workforce in a place with a "progressive" crypto regulatory regime.

Ahmed Yahia, MD and CEO, MGX, says: "MGX's investment in Binance reflects our 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 CEO Richard Teng adds: "Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection."

The emphasis on compliance comes after a host of regulatory problems for the company, cumulating in a US prison sentence last year for founder Changpeng "CZ" Zhao after he pleaded guilty to violating anti-money laundering requirements.

The world's largest crypto exchange also agreed to forfeit $2.5 billion to the government and pay a fine of $1.8 billion in a settlement with various US agencies.

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