Binance Marks Its First Institutional Investment From MGX For $2 Billion In Stablecoins

MGX, an AI and advanced technology investor based out of Abu Dhabi, has invested a staggering $2 billion in Binance. In an announcement dated 12 March 2025, Binance said that this infusion of funds marks the first institutional investment that the company has received.

Notably, this is the largest investment funding that any crypto company has secured so far. The cherry on the cake is that MGX made this payment in stablecoins. While the exact amount has not been disclosed, the stablecoin payment aligns with the general trend of the industry, particularly in the UAE, which has been in the news for integrating traditional financial systems with blockchain technology.

We are excited to announce the first-ever institutional investment in Binance by @mgx_ai.

This is a significant step in advancing digital asset adoption and reinforcing blockchain’s role in global finance.

The $2B investment is also the single largest investment into a crypto… pic.twitter.com/fjZQBqSyC4

— Binance (@binance) March 12, 2025

MGX, for its part, maintained that through this investment they want to enable innovations in AI, blockchain and finance. MGX has also previously collaborated with industry titans such as Microsoft and Blackrock to launch an AI fund worth more than $30 billion.

The company’s investment in Binance also represents MGX’s first foray into the crypto and blockchain sectors. The Abu Dhabi-based company has secured a minority stake in Binance to align with its broader strategy.

Ahmed Yahia, Managing Director & CEO of MGX, said, “MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance.”

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Strategic Implications Of MGX’s Investment Infusion For Binance

Binance has been expanding significantly in the UAE. The company handles around $20 billion in trades per day and has employed nearly 1000 individuals from the country.

Its Dubai subsidiary, Binance FZE, received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA) last year. The VASP license allows Binance to offer an array of exchange and trading services across the UAE. Also, the Abu Dhabi Financial Services Regulatory Authority (FSRA) granted permission to Binance’s Abu Dhabi subsidiary to provide custody services.

Binance’s CEO, Richard Teng, has deep ties to the UAE and has previously led the Abu Dhabi Financial Services Regulatory Authority.  Teng is expected to set in motion Binance’s operations in line with the UAE’s vision to become a leader in digital finance and blockchain innovations.

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Funding For Crypto Is On The Rise

2025 is shaping up to be a good year for crypto firms to strike deals with venture capitalists. As per research done by The Tie, February alone saw a total of 137 companies securing cumulative funding of $1.11 billion.

In February 2025, 137 crypto companies raised approximately $1.11 billion, with the largest publicly disclosed raise being Figure’s $200 million raise.

Read our full February 2025 Crypto Funding Brief

— The Tie (@TheTieIO) March 6, 2025

Moreover, PitchBook analyst Robert Le anticipates that crypto VC funding will be “much much stronger” in 2025 compared to 2024. According to PitchBook, crypto firms will raise $18 billion in 2025 compared to $13.6 billion in 2024.

Recent favorable regulations of crypto in the US drive a lot of that growth. However, as of this writing, the broader situation is far from supportive. Trade wars and the threat of recession have seen a considerable pullback in asset prices.

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Are Stablecoins Becoming The De Facto Standard For Institutional Investments?

Binance is not the only company to have received large institutional funding in stablecoin. Mesh, a San Francisko-based crypto payment network, recently closed an $82 million Series B funding round, paid almost entirely in PayPal USD (PYUSD) stablecoins.

Mesh states that the PYUSD stablecoins were used for instantaneous fund transfer, cost effectiveness, transparency and availability. Bam Azizi, CEO and Co-Founder of Mesh, commented, “Stablecoins present the single biggest opportunity to disrupt the payments industry since the invention of credit and debit cards, and Mesh is now first in line to scale that vision across the world.”

#PYUSD is eating the world! Thanks to PYUSD, we successfully closed our Series B round even when traditional banks were closed—no waiting until Monday or dealing with manual phone confirmations. #Stablecoins operate 24/7, offering cheap, accessible, and lightning-fast… https://t.co/rqWZj0Iegc

— Bam Azizi (@bamazizii) March 11, 2025

The adoption of stablecoins is seen as an important cog in crypto’s mass adoption. Currently, only Binance and Mesh have received large-scale crypto funding from institutions. However, that may soon change as these institutional investments have potentially paved the way for traditional investment firms to explore opportunities in the blockchain and cryptocurrency sectors.

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