In a landmark deal, Binance, the world’s largest cryptocurrency platform, has secured a $2 billion investment from Abu Dhabi-based tech investor MGX. This historic investment, announced on Wednesday, marks the first institutional investment in Binance and the largest crypto-related deal ever conducted using stablecoins.
According to Binance, the deal gives MGX a minority stake in the company, aligning with MGX’s efforts to support artificial intelligence (AI)-powered blockchain solutions, decentralized finance, and tokenized digital economies.
“With Binance’s 260 million+ registered users and over $100 trillion in cumulative trading volume, this move reinforces blockchain’s role in global finance,” Binance stated.
Institutional Adoption of Digital Finance
Ahmed Yahia, CEO of MGX, emphasized the importance of secure and compliant blockchain infrastructure, noting that “institutional adoption of digital finance is accelerating.” Yahia added, “Binance has led innovation in exchange technology, tokenization, staking, and payments. Together, we are committed to building a more inclusive and robust digital finance ecosystem.”
Binance CEO Richard Teng hailed the investment as a pivotal moment for the crypto industry, stating that the collaboration will “shape the future of digital finance.” Teng reaffirmed Binance’s commitment to compliance, security, and fostering a transparent regulatory framework for the crypto industry worldwide.
The investment comes as the cryptocurrency landscape in the US undergoes significant changes. Binance’s US offshoot, (link unavailable), has resumed accepting US dollar deposits and withdrawals, following a regulatory crackdown that led to a temporary suspension of these services.
Read also: Binance and US SEC agree to pause case for 60 days. Resolution in sight.
Use of Stablecoins for the Investments and the Business-Friendly Climate in Abu Dhabi
The deal also highlights the growing adoption of stablecoins, with MGX using these digital currencies to facilitate the investment. As reported by PYMNTS, FinTechs are increasingly leveraging stablecoins, while banks remain cautious due to regulatory concerns and risk appetite.
No doubt, the business and investment climate for crypto innovations in the Abu Dhabi region has been encouraging, opening the window for such massive investment.
This record-breaking investment is expected to propel Binance’s growth and cement its position as a leader in the crypto industry.
Read also: Nigeria charges Binance $81.5 billion for economic losses and tax evasion.
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