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Binance Secures $2B Investment from Abu Dhabi's MGX in First Institutional Deal

Flexi Group

Binance, the world's largest cryptocurrency exchange by trading volume, announced on Wednesday that Abu Dhabi-based investment firm MGX has made a significant $2 billion investment in the company.


Binance Secures $2B Investment from Abu Dhabi's MGX in First Institutional Deal

This marks the first institutional investment in Binance and represents MGX’s inaugural foray into digital assets, according to a press release issued by the exchange.


The press release further noted that the investment was made in stablecoins, though the exact cryptocurrency involved has not been disclosed. This investment signals a major development in Binance’s ongoing expansion and strengthens its ties to the Middle East region, where the firm has been building a robust presence.


With more than $20 billion in daily trading volume, Binance continues to dominate the crypto exchange market globally, with CoinMarketCap data showing its considerable market lead. Binance’s operations in Abu Dhabi are significant, employing roughly 1,000 people in the city.


Cyprus Company Formation

In addition to its workforce, Binance's Dubai subsidiary, Binance FZE, obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) in 2024, which grants the company the legal framework to offer a wide range of exchange and trading services throughout the United Arab Emirates. Moreover, the company's Abu Dhabi subsidiary received authorization to provide custody services from the Abu Dhabi Financial Services Regulatory Authority.


Richard Teng, who now serves as the CEO of Binance, has extensive experience in the region, having previously led the Abu Dhabi Financial Services Regulatory Authority.

Following the announcement, Binance’s native token, BNB, saw a brief spike, rising by 3% to $574, before retracing its steps and dipping to $550.


This move highlights both Binance’s growing influence in the Middle East and MGX’s commitment to expanding its portfolio into the burgeoning digital asset space. 

By fLEXI tEAM

 

 

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