Emirati state-owned investment firm MGX has announced a $2 billion investment in Binance, marking the cryptocurrency exchange’s first-ever institutional funding and what the companies called the “single largest investment” ever paid in cryptocurrency.
In a joint statement on Thursday (March 13), MGX and Binance said the minority stake in the crypto exchange would be paid in stablecoins, making it the largest cryptocurrency-based investment in history.
Stablecoins are digital assets designed to maintain a fixed value, typically pegged to a fiat currency like the US dollar.
MGX expands into crypto
MGX an Abu Dhabi-backed investment firm launched last year, has primarily focused on artificial intelligence investments. In September, it partnered with BlackRock and Microsoft to establish a more than $30 billion AI fund, but this marks its first foray into the cryptocurrency and blockchain sectors.
“MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” Ahmed Yahia, managing director and CEO of MGX, said in a statement.
The press release added that by partnering with Binance, MGX seeks to drive innovation at the intersection of AI, blockchain, and finance.
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