Binance Secures $2B Investment from Abu Dhabi’s MGX

This marks Binance’s first institutional investment, with the funds provided in an undisclosed stablecoin, according to the exchange.

Points to Know:

• Abu Dhabi-based investment firm MGX has made a $2 billion investment in Binance, marking both the first institutional investment in the exchange and MGX's debut in the digital asset space.
• Binance, the world's largest crypto exchange by trading volume, processes over $20 billion in daily trades and maintains a strong presence in Abu Dhabi with approximately 1,000 employees.
• Binance CEO Richard Teng previously led the Abu Dhabi Financial Services Regulatory Authority.

Binance announced on Wednesday that Abu Dhabi-based investment firm MGX has invested $2 billion in the company.

This marks Binance's first institutional investment and MGX's first venture into digital assets. The investment was made in stablecoins, though the specific currency was not disclosed, according to a press release.

Binance, the world's largest crypto exchange by trading volume, processes over $20 billion in daily transactions, according to CoinMarketCap data. The company has a strong presence in Abu Dhabi, employing approximately 1,000 people in the city.

Binance's Dubai subsidiary, Binance FZE, secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) last year, allowing it to offer a wide range of exchange and trading services across the UAE. Meanwhile, its Abu Dhabi subsidiary received regulatory approval to provide custody services from the Abu Dhabi Financial Services Regulatory Authority.

Binance CEO Richard Teng previously served as the head of the Abu Dhabi Financial Services Regulatory Authority.

Following the investment news, BNB, the native token of the Binance-linked BNB Chain, briefly surged 3% to $574 before retreating to $550.