Binance bags $2bn investment from Abu Dhabi-linked MGX

Binance conscionable announced that it has raised a $2 cardinal concern from MGX, an concern steadfast linked to the Abu Dhabi government.

The crypto exchange’s authoritative release celebrated the firm’s “substantial footprint successful the UAE,” and said that astir a 5th of its 5,000-strong workforce operates from the nation. Many of them enactment astatine the One Central bureau complex.

Binance declined to sanction the United Arab Emirates arsenic its planetary headquarters. A spokesperson told DL News that it is inactive searching for one, “which has tremendous implications with respect to however the institution volition run going forward.”

“We are focused connected remaining disciplined and thoughtful arsenic we research our options,” the Binance spokesperson said.

No cardinal office

Binance has agelong avoided saying wherever its office is located.

Co-founder and erstwhile CEO Changpeng Zhao insisted during his tenure that Binance, successful opposition to much accepted companies, didn’t person a cardinal office. Zhao stepped down aft pleading guilty to not doing capable to forestall money-laundering connected the platform.

He served four months successful 2024 and paid a $50 cardinal fine. Binance was ordered to wage a grounds $4.3 cardinal punishment arsenic portion of the settlement.

His successor, Richard Teng, formerly served arsenic the CEO of the Abu Dhabi Financial Service Authority. He “played a cardinal relation successful initiating” the crypto regulatory model successful Abu Dhabi, the $2 cardinal announcement said.

While helium has pledged to found a planetary office and said that the UAE is “very attractive” arsenic a imaginable location, he’s besides stopped abbreviated of naming one.

Teng was, however, blessed to talk astir the caller currency top-up — Binance’s archetypal organization investment.

“This concern by MGX is simply a important milestone for the crypto manufacture and for Binance. Together, we are shaping the aboriginal of integer finance,” helium said successful a statement.

Binance’s token BNB was comparatively level connected the news, trading betwixt $550 and $560 connected the day.

Enter MGX

MGX was launched successful March 2024 nether the directive of United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan.

“In MGX, we are establishing a UAE nationalist champion focused connected AI and precocious technologies,” said Sheikh Tahnoun bin Zayed Al Nahyan, lawman ruler of Abu Dhabi and seat of MGX, astatine the time.

The steadfast had a wildly engaged archetypal year. It has reportedly invested successful OpenAI, Databricks, and Elon Musk’s xAI arsenic good arsenic formed partnerships with BlackRock, Microsoft, SoftBank, and Oracle.

Ahmed Yahia, CEO of MGX, said the $2 cardinal concern reflects the firm’s committedness to “advancing blockchain’s transformative imaginable for integer finance.”

Andrew Flanagan is simply a markets analogous for DL News. Have a tip? Reach retired to [email protected].