Abu Dhabi-based investment firm MGX has announced a $2 billion investment in Binance, the world’s largest cryptocurrency exchange.
This marks the first institutional funding Binance has received and is the largest single investment ever made in a crypto company. The entire transaction was conducted using stablecoins, making it the largest investment of its kind done through digital assets.
A Strategic Move into Crypto
This investment represents MGX’s entry into the cryptocurrency sector. The firm, founded in 2024 by Abu Dhabi’s Mubadala sovereign wealth fund and artificial intelligence group G42, has ambitious plans to manage $100 billion in assets.
Ahmed Yahia, CEO of MGX, emphasized the importance of secure and scalable blockchain infrastructure as institutional adoption of crypto continues to expand. He praised Binance for its role in cryptocurrency innovation, from exchange technology to staking and payments.
Binance’s Position in the Market
Binance remains the dominant force in the crypto exchange industry, handling significantly more trading volume than its competitors. Over the past 24 hours, Binance recorded $21 billion in spot trading volume, far exceeding Bybit’s $3 billion and Coinbase’s $4 billion. In the derivatives market, Binance processed $74 billion in trades, compared to Bybit’s $28 billion and OKX’s $30 billion.
Binance founder Changpeng Zhao (CZ) acknowledged the significance of the investment, stating that it was the first institutional funding the company has accepted. He also highlighted the transaction’s unique nature, being entirely in stablecoins, and hinted at potential market moves with the remark, “More stables to buy alts soon.”
This deal reflects the increasing interest from institutional investors in the crypto space. With regulatory frameworks evolving and blockchain technology gaining wider acceptance, major financial players are looking for opportunities in the sector. MGX’s investment in Binance underscores the belief that digital assets will play a central role in the future of finance.