Abu Dhabi’s MGX Invests $2 Billion in Binance Using Stablecoins

YEREVAN (CoinChapter.com) — Abu Dhabi-based investment firm MGX has committed $2 billion to Binance, making it the first institutional investment in the exchange’s eight-year history. Binance announced the deal on March 12, stating that the funding will be entirely in stablecoins.

Interestingly, the exchange did not disclose which stablecoin was used. The investment is MGX’s first in the cryptocurrency sector. The firm specializes in data centers, clean energy, and AI and is now expanding into blockchain technology.

Binance Secures Institutional Funding as Crypto Grows

Binance is the world’s largest cryptocurrency exchange, with over 260 million registered users. The platform supports 466 cryptocurrencies, according to CoinMarketCap.

The exchange is reviewing its listing process to address the rising number of altcoins. Binance has not provided details on potential changes, but the company has acknowledged the rapid expansion of the crypto market.

MGX Expands Into Blockchain and Digital Assets

MGX aims to support blockchain technology alongside AI and finance. In a statement, the firm said the investment in Binance will help “enable innovation at the intersection of AI, blockchain technology, and finance.”

The company has been increasing its presence in emerging technology. The crypto sector has seen growing institutional interest as companies explore digital assets and financial technology.

Crypto Venture Capital Funding Increases in 2025

Above all, investment in the crypto industry is growing. In February, 137 crypto firms secured a total of $1.11 billion in funding, according to The TIE.

In 2024, cryptocurrency companies raised $13.6 billion. Projections from PitchBook suggest that the total for 2025 could exceed $18 billion.

Crypto Investments Linked to Regulatory Developments

Changes in US regulatory frameworks have influenced crypto venture capital funding. Notably, investors are responding to market conditions and policy updates that could impact crypto assets and digital finance.

HashKey Capital CEO Deng Chao told,

“As we enter into a supportive macro environment driven by stimulative US policies and the formalization of crypto regulatory frameworks, these macro tailwinds are set to drive more VC investments heading into 2025.”

Overall, the macroeconomic landscape remains uncertain. Specifically, trade disputes and economic slowdowns have affected market stability. However, business cycles are expected to shift, potentially influencing crypto investments and liquidity flows.