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The Binance logo is prominently featured on a screen in San Anselmo, California, as of June 6, 2023.
In a significant development for the cryptocurrency sector, the Emirati state-owned investment firm MGX has announced an impressive $2 billion investment into Binance. This investment marks a pivotal moment as it is recognized as the first institutional investment made by Binance and is touted as the “single largest investment” in the cryptocurrency market to date.
According to a joint press release issued by both companies, the minority stake acquired by MGX will be financed using stablecoins. This approach sets a precedent as it represents the “largest investment ever” transacted in cryptocurrency, with stablecoins designed to maintain a stable value often linked to traditional currencies.
MGX was established in Abu Dhabi last year, with a strategic focus on advancements in AI technology. The firm made headlines in September when it joined forces with industry giants such as BlackRock and Microsoft to initiate an AI fund exceeding $30 billion. However, prior to this investment, MGX had not delved into the cryptocurrency or blockchain arenas.
“The investment by MGX in Binance underscores our dedication to unlocking the transformative capabilities of blockchain technology within the digital finance landscape,” stated Ahmed Yahia, the managing director and CEO of MGX.
The release also highlighted that “by aligning with a prominent player in the industry, MGX aims to foster innovation where AI, blockchain, and finance converge.”
Details regarding the specific size of the stake and the stablecoin chosen for the transaction remain undisclosed as neither Binance nor MGX has provided immediate commentary on these aspects. Additionally, queries related to the completion of the deal have not yet garnered a response from Binance.
This investment aligns with the broader ambitions of the United Arab Emirates to position itself as a leading entity in the global technology landscape and to establish itself as a significant regional hub for cryptocurrency.
As the world’s largest cryptocurrency exchange, Binance has made strides in expanding its operations throughout the Middle East, especially in light of increasing regulatory challenges and enforcement actions encountered in other regions over the past years.
The press release reports that Binance employs around 1,000 individuals from its total global workforce of approximately 5,000 in the UAE. Furthermore, the exchange boasts a user base that has surpassed 260 million registered accounts and has achieved a remarkable cumulative trading volume exceeding $100 trillion.
Binance CEO Richard Teng is set to participate in a panel discussion at CNBC’s CONVERGE LIVE event in Singapore at 2:40 p.m. local time (2:40 a.m. ET) on Thursday.
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