Leading cryptocurrency exchange Binance has secured $2 billion in investment from Abu Dhabi-based Artificial Intelligence (AI) and tech investor MGX. The sovereign wealth fund fulfilled its commitment to the digital asset service provider in stablecoins.
Details of Binance and MGX Deal
The MGX investment marks Binance’s first institutional investment and the tech firm’s first investment in a crypto and blockchain business. It is also touted as the largest single investment in a crypto firm to date. Richard Teng, Binance’s CEO, described the investment as “a significant milestone for the crypto industry and for Binance.”
Furthermore, he claimed that the investment demonstrates the exchange’s commitment to advancing the transformative potential of blockchain for digital finance.
Generally, there is a growing demand for crypto solutions amongst institutional investors. As institutional adoption accelerates, there is also a greater need for secure, compliant, and scalable blockchain infrastructure and solutions.
MGX CEO and Managing Director Ahmed Yahia, voiced this sentiment in a statement, noting that with Binance, “we are committed to building a more inclusive and robust digital finance ecosystem.”
MGX Owns Minority Stake in Binance
According to the terms of the agreement, MGX now owns a minority stake in the crypto company.
It is worth noting that MGX has already established itself in the United Arab Emirates as a top firm supporting firms that specialize in developing AI and other advanced technology. Hence, its collaboration with Binance is focused on bolstering AI, blockchain, and financial innovation.
Meanwhile, Binance may consider this deal with MGX as a strategic way to expand its operations further to the UAE. Almost nine months ago, the exchange boosted its operations in the Middle East by securing a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).
What’s Else is New With Binance?
On the one hand, the exchange has other ongoing projects to enhance its position in the crypto market, especially amid regulatory challenges. A few weeks ago, Binance sought the opinion of its community on token listings and delistings on the platform. This was the firm’s way of democratizing its token listing process.
Users can upvote a project for listing in the Alpha Observation Zone or downvote a token for delisting via the Monitoring Zone.
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