Binance, the world’s largest cryptocurrency exchange, has secured its first institutional investment, a landmark $2 billion deal with MGX, an Abu Dhabi-based artificial intelligence and technology investment firm.
The transaction, which marks one of the largest investments ever in the crypto industry, will be paid entirely in stablecoins.
Announced on March 12, this deal grants MGX a minority stake in Binance, reinforcing Abu Dhabi’s ambitions to position itself as a hub for AI and blockchain innovation.
The investment aligns with MGX’s broader strategy of merging artificial intelligence with financial technology.
Binance CEO Richard Teng called the investment a “significant milestone” for both Binance and the broader digital asset industry. He emphasized Binance’s commitment to compliance, security, and collaboration with regulators worldwide.
Binance’s UAE Presence and Regulatory Push
Binance has built a strong presence in the UAE, employing around 1,000 of its 5,000 global staff in the country. The company holds a license to operate from Dubai’s crypto regulator and has made the UAE one of its main operational bases.
This move follows Binance’s efforts to rebuild its reputation after facing regulatory challenges in the U.S.
In 2023, Binance agreed to a $4.3 billion settlement with U.S. authorities for failing to prevent money laundering and breaching international sanctions. As part of the agreement, Binance founder Changpeng Zhao stepped down as CEO and later served four months in a U.S. prison.
Abu Dhabi’s Crypto Strategy and Binance’s Future
The UAE has been actively positioning itself as a leading hub for cryptocurrency innovation.
Abu Dhabi has developed a regulatory framework for digital assets, attracting international crypto firms.
Binance’s collaboration with MGX strengthens its ties with the region and aligns with the Gulf state’s broader ambitions to integrate AI and blockchain into its economy.
