Editor | Cat Brother Wu said Blockchain
On March 12, Beijing time, Binance announced that Abu Dhabi MGX made its first institutional investment in it, but did not disclose the specific valuation. This $2 billion investment is the largest investment in a crypto company to date and also the largest investment ever paid in cryptocurrency. CZ tweeted that Abu Dhabi MGX invested $2 billion in Binance for a minority stake. This transaction will be completed 100% in cryptocurrency (stablecoins), making it the largest cryptocurrency investment transaction to date.
The main investor of Abu Dhabi MGX is the Abu Dhabi government of the 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, Tahnoun bin Zayed Al Nahyan, is the Deputy Crown Prince of Abu Dhabi and National Security Advisor, son of the UAE's founding president Zayed bin Sultan Al Nahyan, and brother of the current UAE president, Mohamed bin Zayed Al Nahyan.
Previously, MGX focused on investing in industries that can be scaled by AI, including semiconductors, infrastructure, software, tech services, life sciences, and physical AI. MGX participated in a financing round for OpenAI in October 2024, raising $6.6 billion at a valuation of $157 billion, and in December 2024, participated in xAI's $6 billion Series C financing. In January 2025, it participated in the Stargate program promoted by Trump and others, claiming to collaborate with OpenAI, SoftBank, and Oracle to build new AI infrastructure in the U.S., with a total investment expected to reach $500 billion over the next four years.
He Yi stated that they (will continue to) welcome sovereign funds, but 'financial investors can pass'. Wu said editor Colin analyzed that Trump has just established the U.S. sovereign wealth fund, and if Binance can secure investment from this fund, it would undoubtedly have significant implications for the restart of Binance US, BUSD, and others. China is using Hong Kong as a testing ground for cryptocurrency; if Binance can receive investments from important state-owned enterprises such as China Merchants and China Resources, it will also be significant for future positioning. However, there are risks including the U.S. party transition, uncertainties regarding the U.S. sovereign wealth fund, and unclear policies in mainland China. Additionally, sovereign funds in places like Singapore and France also seem to meet Binance's needs. However, the U.S. and China are undoubtedly still the most important targets for Binance.
Here is the original text of the official press release issued by Binance:
March 12, 2025 — The world's largest cryptocurrency exchange Binance and the Abu Dhabi-based AI and advanced technology investment institution MGX announced a $2 billion investment, which is not only Binance's first institutional investment to date but also the largest investment in the crypto industry, setting a record for the highest stablecoin payment investment.
This investment marks MGX's official entry into the cryptocurrency and blockchain industry, acquiring a minority stake in Binance and supporting the transformative impact of blockchain technology on global society as part of its broader strategy. By collaborating with industry leaders, MGX aims to promote the deep integration of AI, blockchain technology, and finance, driving innovative development.
Binance has a significant business presence in the UAE, known for its innovation, advanced cryptocurrency regulatory framework, and clarity of digital asset regulations. Currently, Binance has about 1,000 employees in the UAE, accounting for 20% of its global team of 5,000.
As the world's safest, compliant, and trusted cryptocurrency exchange, Binance is in an absolute leading position in the industry, with its trading volume exceeding the sum of several exchanges ranked behind it. Currently, Binance has over 260 million registered users, with a total trading volume exceeding $100 trillion. This investment further solidifies Binance's position at the forefront of the crypto revolution while also demonstrating 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, stated: 'MGX's investment in Binance reflects our firm commitment to blockchain-enabled digital finance. As institutional adoption accelerates, the demand for secure, compliant, and scalable blockchain infrastructure and solutions is stronger than ever. Binance has long maintained a leading position in crypto innovation, whether in trading technology, asset tokenization, staking, or payments. We will work together to build a more inclusive and robust digital financial ecosystem.'
Binance CEO Richard Teng added: 'This investment from MGX is an important milestone for the crypto industry and Binance. We are jointly shaping the future of digital finance, aiming to create a more inclusive and sustainable ecosystem, focusing on compliance, security, and user protection. Binance remains committed to working with global regulators to promote transparent, responsible, and forward-looking industry policies. Our ongoing investment in security and compliance will further support the healthy development of the global crypto financial ecosystem.'
Richard Teng previously served as the CEO of the Abu Dhabi Financial Services Regulatory Authority (FSRA), playing a key role in establishing one of the world's first crypto regulatory frameworks, and his leadership experience laid the foundation for Binance's global compliance strategy.
Previously, between the end of 2024 and February 2025, rumors circulated in the market about 'Binance being sold'. In response on February 17, CZ stated that a competitor from Asia was spreading FUD and emphasized that as shareholders, Binance had not sold. However, CZ also mentioned that top investors have always been interested in Binance and may allow single-digit percentage investments in the future.
He Yi responded at the time that such remarks were a public relations strategy of competitors aimed at diverting market attention. She stated that with Bitcoin prices hitting new highs, the business model of trading platforms as ecological validators has been recognized, and Binance has institutional discussions on investment and cooperation every month, not ruling out the introduction of strategic partners and the possibility of mergers and acquisitions.
Earlier, the community found based on Binance's proof of reserves data that from January to February 2025, Binance's BTC holdings dropped from 46,896 to 2,747, a decline of 94.1%; ETH holdings fell from 216,313 to 175, a decline of 99.9%; it is important to note that these assets mainly represent the portion remaining after deducting user funds and are likely owned primarily by the platform itself. Currently, most cryptocurrencies have been reallocated to stablecoin USDC, with USDC holdings increasing from $805 million to $1.269 billion, an increase of 57.5%. Based on January's market conditions, most cryptocurrencies had historical highs. Shenyu believes this change should be attributed to profit recognition at the beginning of the year, similar situations occurred in June 2023 (penalty payment) and February 2024. Binance officially responded that it had not sold assets, and this was merely an adjustment of Binance's treasury accounting process.
It is worth noting that as early as 2021, Wu said exclusively reported that Binance was considering a valuation of $200 billion to $300 billion to attract investments from sovereign funds controlled by governments in places like Singapore, in exchange for better protection. The article also foresightedly pointed out that apart from Singapore, Dubai and other locations were also possible options for Binance to attract investment. However, this financing did not succeed, and Temasek, an investment company fully owned by the Singapore government, participated in FTX's Series B financing in October 2021 (at that time, FTX was valued at about $25 billion).