Emirati state-owned investment company MGX announced $2 billion in financial injections into Binance, which was the cryptocurrency exchange’s first institutional investment and the single largest investment in the virtual currency sector.
In a joint press release, the companies noted that the minority stake will be paid for with stablecoins, making it the largest investment ever paid in cryptocurrency in history.
It is worth clarifying that stablecoins are a type of digital asset designed to hold constant value, usually with a peg to a fiat currency.
MGX investment company was launched last year in Abu Dhabi. It is worth noting that this firm focuses on artificial intelligence technologies. In September, MGX partnered with companies such as Microsoft and BlackRock to launch a machine intelligence fund worth more than $30 billion. At that time, the Abu Dhabi-based firm had yet to invest in the cryptocurrency industry and the blockchain sector.
Ahmed Yahia, managing director and chief executive officer at MGX, stated that the company’s investment in Binance reflects its commitment to advancing the transformative potential of blockchain for digital finance.
In a press release, it was noted that as a result of the partnership with a leading industry player, MGX aims to enable innovation at the intersection of artificial intelligence, blockchain technology, and finance.
Binance and the mentioned company have not commented on the size of the stake or what stablecoin will be used for payment. Moreover, Binance did not respond to a media request about whether the deal had been finalized.
As part of its broader ambitions, the United Arab Emirates aims to become a global technology leader. Against this background, the country has been growing into a regional crypto hub.
Binance, which is the largest cryptocurrency exchange in the world, has expanded its footprint in the Middle East as it has faced regulatory hurdles and enforcement measures in other jurisdictions in recent years.
The press release contains information according to which about 1,000 of Binance’s approximately 5,000 employees worldwide currently work in the United Arab Emirates.
As we have reported earlier, Changpeng Zhao Admits Binance Token Listing Needs Reform.
