Editor | Cat Brother Wu says blockchain
On the evening of March 12, Beijing time, Binance announced that Abu Dhabi MGX made its first institutional investment in them, but did not disclose the specific valuation. This $2 billion investment is the largest investment in a cryptocurrency company to date and is also the largest investment ever made with cryptocurrency payments. CZ tweeted that Abu Dhabi MGX invested $2 billion in Binance, acquiring a minority stake. This transaction will be completed 100% in cryptocurrency (stablecoin), 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, MGX's board chairman Tahnoun bin Zayed Al Nahyan is the Deputy Crown Prince of Abu Dhabi and the 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 scalable AI-enabled industries, including semiconductors, infrastructure, software, tech services, life sciences, and physical AI. MGX participated in OpenAI's fundraising of $6.6 billion at a valuation of $157 billion in October 2024, took part in xAI's $6 billion Series C financing in December 2024, and was involved in the Stargate project promoted by Trump and others in January 2025, 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, "financial investors, not so much." Wu said editor Colin analyzed that Trump has just established the U.S. sovereign wealth fund, and if Binance could secure investment from this fund, it would undoubtedly have significant implications for the relaunch of Binance US, BUSD, and other initiatives. China is using Hong Kong as a testing ground for cryptocurrencies, and if Binance can obtain investments from important state-owned enterprises like China Merchants and China Resources, it would also hold significant meaning for future arrangements. However, there are risks associated with the U.S. political transition, uncertainty 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. But the U.S. and China are undoubtedly still Binance's most important targets.
The following is the original official press release from Binance:
March 12, 2025 - The world's largest cryptocurrency exchange, Binance, and the Abu Dhabi-based AI and advanced technology investment firm MGX announced a $2 billion investment, which is not only Binance's first institutional investment to date but also the largest investment in the cryptocurrency industry and set 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 as part of its broader strategy, supporting the transformative impact of blockchain technology on global society. 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 in digital asset regulations. Currently, Binance's workforce in the UAE accounts for approximately 1,000 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 volumes exceeding the combined total of several exchanges that rank behind it. Currently, Binance has over 260 million registered users and total trading volume exceeding $100 trillion. This investment further solidifies Binance's position at the forefront of the crypto revolution while highlighting MGX's long-term commitment in the fields of AI-driven blockchain solutions, decentralized finance (DeFi), and tokenized digital economies.
MGX Managing Director and CEO Ahmed Yahia 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 maintained a leading position in the field of crypto innovation, whether in trading technology, asset tokenization, staking, or payments. We will work together to build a more inclusive and resilient digital financial ecosystem."
Binance CEO Richard Teng added, "MGX's investment is an important milestone for the cryptocurrency industry and Binance. We are collectively shaping the future of digital finance, aiming to create a more inclusive and sustainable ecosystem focused on compliance, security, and user protection. Binance will continue to collaborate 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 Financial Services Regulatory Authority (FSRA) in Abu Dhabi, playing a key role in establishing one of the world's first regulatory frameworks for cryptocurrencies, and his leadership experience laid the foundation for Binance's global compliance strategy.
Previously, during the period from the end of 2024 to February 2025, rumors circulated in the market about 'Binance being sold.' In response, CZ stated on February 17 that a certain Asian competitor was spreading FUD and emphasized that as shareholders, Binance had not been sold. However, CZ also mentioned that top investors have always been interested in Binance, and in the future, they might allow single-digit percentage investments.
He Yi responded at the time that such remarks were a PR strategy from competitors aimed at diverting market attention. She stated that as Bitcoin prices reached new highs, the business model of trading platforms as ecological validators has been recognized, and Binance engages in institutional discussions for investment and cooperation every month, not ruling out the introduction of strategic partners and keeping the door open for potential acquisitions.
Previously, the community discovered based on Binance's reserve proof data that from January to February 2025, Binance's BTC holdings dropped from 46,896 coins to 2,747 coins, a decrease of 94.1%; ETH holdings fell from 216,313 coins to 175 coins, a decrease of 99.9%; it is important to note that these assets mainly represent the remaining portion after deducting user funds and may primarily belong to the platform itself. Currently, it appears that most cryptocurrencies have been reallocated to stablecoin USDC, with USDC holdings increasing from $805 million to $1.269 billion, an increase of 57.5%. Judging by the market conditions in January, most cryptocurrencies were at historical peaks. Shen Yu believes that this change should be attributed to profit-taking at the beginning of the year, similar situations occurred in June 2023 (fine payment) and February 2024. Binance officially responded that it has not sold assets; this is merely an adjustment in the accounting processes of Binance's treasury.
It is worth noting that as early as 2021, Wu said had exclusively reported that Binance was considering attracting investments from sovereign funds controlled by governments in places like Singapore, with valuations between $200 billion and $300 billion, in exchange for better protection. The article also foresightedly pointed out that besides Singapore, Dubai and others were also possible options for Binance to attract investment. However, this financing ultimately did not succeed, while Temasek, a fully state-owned investment company under the Singapore government, participated in FTX's Series B financing in October 2021 (when FTX's valuation was approximately $25 billion).