Source: Cointelegraph Original: "{title}"
Binance announced on Wednesday (March 11) that the Abu Dhabi-based investment firm MGX has invested $2 billion in it. This marks Binance's first institutional investment and MGX's first focus on digital assets. As part of a broader strategy, MGX has also acquired a minority stake in Binance.
According to the announcement, the investment was made in the form of stablecoins, but it did not specify which stablecoin was used. Binance also declined to respond to Cointelegraph's inquiry about which stablecoin was used in the transaction.
In recent years, Binance has expanded its operations in the Middle East as it faced regulatory hurdles and enforcement actions in other regions. Its Abu Dhabi subsidiary has obtained a license from the Abu Dhabi Financial Services Regulatory Authority to provide custody services, employing around 1,000 staff in Abu Dhabi and approximately 5,000 globally. Additionally, Binance's Dubai subsidiary, Binance FZE, received a virtual asset service provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA) last year, allowing it to offer a wide range of trading and exchange services across the UAE.
Richard Teng, the current CEO of Binance, who previously served as the head of the Abu Dhabi Financial Services Regulatory Authority, stated in the announcement: "This investment from MGX is not only a significant milestone for Binance but also a key moment for the entire crypto industry. Binance will continue to work with global regulators to promote transparent, responsible, and forward-looking policy-making in the crypto industry. Furthermore, Binance will continue to increase its investment in security and compliance to enhance trust and stability in the crypto industry."
Ahmed Yahia, Managing Director and CEO of MGX, said: "MGX's investment in Binance reflects our commitment to driving the transformative potential of blockchain technology in the digital finance space."
Following this news, Binance's platform token, Binance Coin (BNB), surged briefly before retracting its gains. According to data from Gate.io, as of Thursday at 5:30 PM, BNB's 24-hour increase was 6.38%, priced at $579.
More venture capital may flow into the crypto industry this year.
The momentum for cryptocurrency venture capital deals is strong in 2025. According to data from the U.S. trading analytics platform The TIE, 137 crypto companies raised a total of $1.11 billion in February this year. Data provider PitchBook also indicated that cryptocurrency companies raised a total of $13.6 billion last year, with expectations to raise over $18 billion this year. This growth is primarily driven by positive regulatory developments in the U.S. and expectations of a more favorable financing environment.
Since the beginning of this year, tensions from trade wars and recession fears have led to a significant decline in crypto asset prices. However, with the acceleration of the business cycle and a surge in global liquidity, market conditions are expected to improve in the coming months, leading to inflows into risk assets.
Deng Chao, CEO of HashKey Capital, stated in an interview with Cointelegraph: "As the U.S. implements stimulus policies and formally establishes a regulatory framework for cryptocurrencies, the supportive macro environment will drive more venture capital into 2025."
Who is MGX?
MGX is a state-owned investment company based in Abu Dhabi, established in 2024, focusing on investments in emerging technology fields such as artificial intelligence (AI), data centers, and clean energy. Its goal is to drive the development of future technologies through strategic investments and to gain leadership positions in these areas.
By collaborating with globally renowned companies and pursuing a global expansion strategy, such as launching over $30 billion in AI funds in partnership with BlackRock and Microsoft; acquiring Brazilian biometric company Pixeon; and jointly building the Middle East's first AI chip packaging plant with Samsung, MGX is striving to quickly position itself at core nodes through capital mergers and acquisitions, creating a complete ecological closed loop from chips to applications.
In any place where precious wealth can be obtained, a suitable introduction often plays a key role. Just like in traditional Chicago politics, there is a saying: "We do not welcome those who have no recommendations." In today's Silicon Valley, the path to wealth often relies on connections with Stanford University's admissions committee or venture capital incubators. The figure behind MGX, Tahnoun bin Zayed Al Nahyan, is undoubtedly one of the most sought-after individuals by global fund managers and financiers.
On the surface, Tahnoun is merely the current chairman of MGX's board. However, on a deeper level, he is the Deputy Crown Prince of Abu Dhabi and the National Security Advisor of the UAE. Tahnoun is also the son of Sheikh Zayed Bin Sultan Al Nahyan, the "father of the nation" of the UAE, and a senior member of the UAE royal family.
An article published by Bloomberg last year stated: "As the heir to one of the world's wealthiest families, Tahnoun controls over $15 trillion in national assets and private funds. Even the opportunity to invest a small portion of that wealth could yield substantial fees and returns." Time magazine also included Tahnoun in its list of the 100 most important people in the AI field last year, highlighting his significant influence globally.
If Abu Dhabi is the ship of the UAE, then Tahnoun is the helmsman steering its course.
At the executive level, MGX brings together top elites from the finance and technology sectors, including the Chief Strategy Officer of Google DeepMind, the head of SpaceX's Starship project, and the head of the UAE Central Bank's digital currency initiative. The CEO is Ahmed Yahia Al Idrissi, who previously served as the CEO of the direct investment platform under the UAE state-owned investment company MUBADALA, with over 30 years of operational and investment experience.
In short, MGX is a typical sovereign investment institution of the UAE, backed by one of the wealthiest families in the Middle East and globally.
Binance accepts investment, but the intention is not just about money.
According to CoinMarketCap, Binance is the largest cryptocurrency exchange in the world by trading volume, with daily trading exceeding $20 billion. Both Changpeng Zhao and Richard Teng have publicly stated at different times that Binance does not need external funding. According to business information provider Crunchbase, Binance has not raised funds from external investors since 2018.
Therefore, Binance's sudden acceptance of MGX's investment and the transfer of a minority stake is seen by the outside world as a gesture of allegiance to the UAE, seeking a national-level "umbrella."
In March this year, Binance co-founder He Yi posted on social media platform X, stating: "Welcome sovereign funds, but financial investors can pass."
Since its founding in Shanghai, Binance has gone through a tumultuous journey, moving from Japan to Malta to Singapore, and ultimately operating without a fixed headquarters. With increasing regulatory pressure, Binance's attitude towards establishing a global headquarters seems to be shifting. Especially after Changpeng Zhao faced criminal charges from the U.S., disclosing the location of its headquarters is viewed as part of its efforts to enhance transparency.
Last year, Binance's current CEO Richard Teng stated in an interview during the Abu Dhabi Financial Conference: "We are still working on this (establishing a headquarters). It is a very complex issue with many different complexities." Tax laws and the ability to attract employees will drive the decision on the headquarters location.
According to a previous survey by Chainalysis, the Middle East and North Africa (MENA) region became the seventh-largest cryptocurrency market globally last year, with an estimated on-chain value of $338.7 billion from July 2023 to June 2024, accounting for about 7.5% of the global total trading volume.
In recent years, the UAE has actively created a friendly cryptocurrency environment, rapidly emerging as a global crypto hub. In August last year, the Dubai Court of First Instance officially recognized the legality of using cryptocurrencies to pay salaries in employment contracts. In September, the UAE allowed licensed virtual asset providers in Dubai to operate nationwide. Additionally, the UAE Central Bank approved a custody insurance product to protect financial institutions and their clients from losses due to hacking, internal fraud, and damage to storage infrastructure.
Related: Binance will delist stablecoins that do not comply with MiCA standards in Europe on March 31.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
