Editor | Cat Brother Wu Blockchain
On the evening of March 12th Beijing time, Binance announced that Abu Dhabi's MGX had made its first institutional investment in Binance, but did not disclose the specific valuation. This $2 billion investment is the largest investment in a crypto company to date and the largest investment paid for in cryptocurrency. CZ tweeted that Abu Dhabi's MGX invested $2 billion in Binance and acquired a minority stake. This transaction was completed 100% in cryptocurrency (stablecoins), making it the largest cryptocurrency investment transaction to date.
The main investor of MGX is the government of Abu Dhabi, UAE, which has a strong state-owned character and is fully controlled by the Abu Dhabi royal family. According to its official website, the chairman of the MGX board of directors, Tahnoun bin Zayed Al Nahyan, is the deputy ruler of Abu Dhabi and the national security advisor, and is the son of the founding president of the UAE, Zayed bin Sultan Al Nahyan, and the brother of the current president of the UAE, Mohamed bin Zayed Al Nahyan.
Previously, MGX has focused on investing in industries empowered by scalable AI, including semiconductors, infrastructure, software, technology services, life sciences and physical AI. MGX previously participated in OpenAI's $157 billion valuation fundraising of $6.6 billion in October 2024, participated in xAI's $6 billion Series C financing in December 2024, and participated in the Stargate project promoted by Trump and others in January 2025, claiming to cooperate with OpenAI, SoftBank and Oracle to build new AI infrastructure in the United States, with a total investment expected to reach $500 billion over the next four years.
He Yi said that (in the future) he welcomes sovereign funds, "financial investors are not enough". Wu Blockchain editor Colin analyzed that Trump has just established a US sovereign wealth fund, and if Binance can obtain investment from this fund, it will undoubtedly be of great significance for the restart of Binance US and BUSD. China is using Hong Kong as a crypto experiment field, and if Binance can obtain investment from important state-owned enterprises such as China Merchants Group and China Resources, it will also be of great significance for its future layout. However, there are also risks such as the US partisan turnover, the uncertainty of the US sovereign wealth fund, and the uncertainty of policies in mainland China. In addition, sovereign funds in Singapore, France and other places also seem to meet Binance's needs. But the US and China are undoubtedly still Binance's most important targets.
Here is the original official press release from Binance:
March 12, 2025 - The world's largest cryptocurrency exchange Binance and MGX, an AI and advanced technology investment firm headquartered in Abu Dhabi, announced a $2 billion investment, which is not only Binance's first institutional investment, but also the largest investment in the crypto industry and the highest investment record paid in stablecoins.
This investment marks MGX's formal entry into the cryptocurrency and blockchain industry, acquiring a minority stake in Binance, and as part of its broader strategy, supporting the transformative impact of blockchain technology on global society. By partnering with industry leaders, MGX aims to drive the deep integration of AI, blockchain technology and finance, and promote innovative development.
Binance has a significant business presence in the UAE, which is known for its innovative and advanced cryptocurrency regulatory framework and the clarity of its digital asset regulations. Currently, Binance's staff in the UAE accounts for about 1,000 out of its global team of 5,000.
As the world's most secure, compliant and trusted cryptocurrency exchange, Binance is in an absolute leading position in the industry, with trading volume exceeding the sum of several exchanges ranked behind it. Currently, Binance has over 260 million registered users and a total trading volume of over $100 trillion. This investment further consolidates Binance's position at the forefront of the crypto revolution, and also demonstrates MGX's long-term commitment to AI-driven blockchain solutions, decentralized finance (DeFi) and the tokenized digital economy.
Ahmed Yahia, Managing Director and CEO of MGX, said, "MGX's investment in Binance reflects our firm commitment to empowering digital finance with blockchain. As institutional adoption accelerates, the demand for secure, compliant and scalable blockchain infrastructure and solutions is stronger than ever. Binance has long been a leader in crypto innovation, whether in trading technology, asset tokenization, staking or payments. We will work together to build a more inclusive and resilient digital finance ecosystem."
Binance CEO Richard Teng added, "MGX's investment is a significant milestone for the crypto industry and Binance. We are shaping the future of digital finance together, with the goal of building a more inclusive and sustainable ecosystem, and focusing on compliance, security and user protection. Binance will continue to work with global regulators to drive transparent, responsible and forward-looking industry policies. Our ongoing investments in security and compliance will further support the healthy development of the global crypto finance ecosystem."
Previously, during the period from the end of 2024 to February 2025, there were rumors in the market about "Binance being sold", to which CZ responded on February 17 that a competitor in Asia was spreading FUD, and emphasized that as a shareholder, Binance had not been sold. However, CZ also said that top investors have always been interested in Binance, and in the future, a single-digit percentage investment may be allowed.
He Yi responded at the time that such statements were the public relations strategy of competitors, with the purpose of diverting market attention. She said that as Bitcoin price hits new highs, the business model of trading platforms as ecosystem validators has been recognized, and Binance has monthly institutional investment and cooperation negotiations, and does not rule out the introduction of strategic partners, and is also open to possible acquisitions.
Earlier, the community found based on Binance's reserve proof data that from January to February 2025, Binance's BTC holdings decreased from 46,896 to 2,747, a decrease of 94.1%; ETH holdings decreased from 216,313 to 175, a decrease of 99.9%; it should be noted that these assets are mainly the remaining part after deducting user funds, which may be mainly owned by the platform itself. Currently, most cryptocurrencies have been reconfigured into the stablecoin USDC, with USDC holdings increasing from 805 million to 1.269 billion, an increase of 57.5%. If looking at the January market, most cryptocurrencies are at historical highs. Shenyu believes that this change should be the provision of profits at the beginning of the year, similar situations have occurred in June 2023 (paying fines) and February 2024. Binance officially responded that they have not sold assets, this is just an adjustment of Binance's treasury accounting process.
It is worth noting that as early as 2021, Wu Blockchain exclusively reported that Binance's global site was considering attracting investment from government-controlled sovereign funds in Singapore and other places at a valuation of $200 billion to $300 billion, in exchange for better protection. The article also foresightedly pointed out that in addition to Singapore, Dubai could also be a possible choice for Binance to attract investment. But this investment and financing was ultimately unsuccessful, and Temasek, a wholly-owned investment company of the Singapore Ministry of Finance, participated in FTX's Series B financing in October 2021 (at which time FTX was valued at about $25 billion).
