Abu Dhabi-Backed Investor Makes $2 Billion Crypto Investment in Binance
By Reuters | March 12, 2025
DUBAI (Reuters) – MGX, an investment group backed by Abu Dhabi, has made a $2 billion cryptocurrency investment in Binance, the world’s largest crypto exchange. This move signals deepening ties between the United Arab Emirates and the crypto giant.
Illustration of the Binance logo.
Binance called the deal its first institutional investment, which is one of the largest ever in the crypto industry. According to the company, the investment will give MGX a minority stake in Binance after MGX’s investment in stablecoin, a cryptocurrency pegged to a fiat currency, such as the dollar.
A Binance spokesperson declined to comment on the details of the governance rights or the size of MGX’s stake, and which stablecoin was used for the investment. MGX also declined to comment.
Binance was founded in 2017 in China by Changpeng Zhao, who is sometimes referred to as “CZ.” The exchange rapidly grew to become the world’s largest after capitalizing on increasing demand for trading Bitcoin and other cryptocurrencies.
Zhao spent time in jail last year after pleading guilty to violating U.S. laws against money laundering. Richard Teng, CZ’s successor, has grown the exchange’s relationship with the UAE, where he previously led Abu Dhabi’s Financial Services Authority.
In the announcement, Binance stated that it has a “substantial footprint” in the UAE, employing approximately 1,000 of its 5,000 total staff locally.
This investment marks MGX’s inaugural public investment into crypto. The company was established almost exactly a year ago to spur the adoption and development of AI and advanced technologies through partnerships.
The UAE is aiming to become a global center for digital assets, including cryptocurrencies. As part of its plan to diversify its economy, the UAE has been attempting to attract some of the biggest firms to build locally.
“MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” said Ahmed Yahia, managing director and CEO of MGX, in the statement. Blockchain is the technology that underpins cryptocurrencies.
MGX, which has also invested in OpenAI and Elon Musk’s xAI, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed. Mubadala, Abu Dhabi’s state-owned $330 billion wealth fund, is a partner in MGX.
The crypto industry has had a resurgence in the past year. This turnaround comes after a series of collapses and scandals in 2022, which revealed widespread misconduct and caused substantial losses for investors. Following the election of U.S. President Donald Trump, who has taken a pro-crypto stance, the biggest cryptocurrency, Bitcoin, hit new all-time highs.
A U.S. federal judge agreed in February to put a civil lawsuit by the U.S. Securities and Exchange Commission against Binance on hold for two months.
In December, Teng told Reuters that Binance was still seeking a base for its global headquarters. This move is seen as an effort to boost transparency following the criminal charges against CZ and a $4.3 billion fine that Binance agreed to pay in the United States in 2023.
French investigators announced in January they had opened a judicial probe into allegations of money laundering, tax fraud and other charges at Binance, which denied the allegations.
“This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance,” Teng said.
(Reporting by Elizabeth Howcroft in Paris and Federico Maccioni in Dubai. Editing by Tommy Reggiori Wilkes and Mark Potter)
