March 18, 2025
By Anjali Kochhar
Abu Dhabi-based investment firm MGX has invested $2 billion in Binance, marking its first major entry into the cryptocurrency sector. The investment, made in stablecoin, grants MGX a minority stake in Binance, though details regarding governance rights and the specific stablecoin used remain undisclosed.
Founded in 2023, MGX focuses on AI and advanced technologies and has previously invested in OpenAI and Elon Musk’s xAI. The firm is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a key figure in the country’s efforts to establish itself as a global hub for digital assets. Abu Dhabi’s state-owned wealth fund, Mubadala, is a partner in MGX.
The UAE has been actively working to attract major blockchain and cryptocurrency firms as part of its economic diversification strategy. Binance, which employs around 1,000 people in the UAE, has strengthened its ties with the region under CEO Richard Teng, who previously led Abu Dhabi’s Financial Services Authority.
This investment comes at a time when Binance faces ongoing legal and regulatory scrutiny. The company has been under investigation by authorities in the U.S. and Europe. In 2023, Binance agreed to pay a $4.3 billion fine to U.S. regulators following a money laundering case involving its founder, Changpeng Zhao (CZ), who later served jail time. French prosecutors have also launched an inquiry into Binance over alleged tax fraud and money laundering, which the company has denied.
Despite regulatory hurdles, Binance continues to expand its global presence. Teng previously stated that the company is still searching for a location for its global headquarters, a move seen as an effort to improve transparency.
Meanwhile, Binance has faced backlash from supporters of Pi Network, a digital currency project, for not listing Pi coins on its exchange. This frustration has led to a surge of one-star reviews for Binance on Google Play and the Apple App Store, impacting its user ratings.
Teng described MGX’s investment as a “significant milestone” for both Binance and the broader cryptocurrency industry, reinforcing confidence in blockchain’s role in the future of digital finance.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
