The firms announced on Wednesday that MGX, an investment organization supported by Abu Dhabi, has invested $2 billion in Binance, strengthening the relationship between the UAE and the biggest cryptocurrency exchange in the world.
The transaction, which Binance referred to as its first institutional investment, is among the biggest in the cryptocurrency sector’s history. After investing in stablecoin, a cryptocurrency based on a fiat currency like the dollar, MGX will become a minority shareholder.
A Binance representative declined to comment on “the agreed governance rights,” the amount of MGX’s stake, and the stablecoin utilized for the investment. After capitalizing on the growing demand for trading bitcoin and other cryptocurrencies, Binance, which was established in 2017 in China by billionaire Changpeng Zhao, became the largest cryptocurrency exchange globally.
Richard Teng, CZ’s successor and a former head of Abu Dhabi’s Financial Services Authority, has strengthened the exchange’s ties with the United Arab Emirates. In its announcement on Wednesday, Binance stated that it had a “substantial footprint” in the United Arab Emirates, where it employs approximately 1,000 of its 5,000 employees.
MGX, which was founded over a year ago “to accelerate the development and adoption of AI and advanced technologies” through partnerships, announced its first public cryptocurrency venture with the investment in Binance.
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