Binance raises record $2B from Abu Dhabi's sovereign wealth fund
What's the story
In a major development, Abu Dhabi's state-owned investment firm MGX has pumped a whopping $2 billion into Binance.
The investment marks the first-ever institutional funding for the cryptocurrency exchange and is being touted as the "single largest investment" ever made in cryptocurrency.
The minority stake in the crypto exchange will be paid using stablecoins, making it the largest cryptocurrency-based investment to date.
Investment strategy
MGX's foray into cryptocurrency
MGX, an Abu Dhabi-backed investment firm founded last year, has mostly concentrated on AI investments.
In September, it partnered with BlackRock and Microsoft to establish a $30 billion AI fund.
However, this latest investment in Binance is MGX's first foray into the cryptocurrency and blockchain space.
Ahmed Yahia, MGX's managing director and CEO, said the investment reflects their commitment to advancing blockchain's transformative potential for digital finance.
Strategic move
UAE's ambition to become a global crypto hub
The investment fits into the UAE's larger goal of becoming a global technology and crypto hub.
Even as it faces regulatory scrutiny and enforcement actions in other jurisdictions, Binance has been expanding its footprint in West Asia.
The exchange employs nearly 1,000 of its 5,000 global workforce in the UAE and boasts over 260 million registered users globally.