Binance receives $2 billion investment in UAE

Jessy (@susanliu33), Golden Finance

The rumors about "Binance seeking to sell" have come true.

On March 12, 2025, Binance announced that it had received a $2 billion investment (paid in stablecoins) from Abu Dhabi MGX, and MGX acquired a minority stake in Binance. This transaction is Binance's first institutional investment to date and the largest single investment in a cryptocurrency company.

After years of deep cultivation in the UAE, Binance has finally become more deeply tied to the UAE through this $2 billion investment.

Who is Abu Dhabi MGX?

MGX is a technology investment company announced by the Abu Dhabi Artificial Intelligence and Advanced Technology Committee (AIATC) in March 2024. It is jointly established by Abu Dhabi sovereign fund Mubadala and G42 Group, and the funds are mainly provided by the UAE government and some global partners. It plays an important role in the field of artificial intelligence and advanced technology.

The chairman of the board of directors of MGX is Sheikh Tahnoun bin Zayed Al Nahyan. He is the younger brother of the President of the United Arab Emirates, the Deputy Ruler of Abu Dhabi, and the UAE National Security Advisor.

From the investor behind MGX, the Abu Dhabi sovereign fund, and the actual controller, the deputy ruler of the UAE. It can be seen that MGX's investment behavior is basically equivalent to that of the UAE government.

A more noteworthy detail is that Abu Dhabi sovereign fund Mubadala also holds BTC spot ETF. According to Reuters, as of February 2025, Mubadala's holdings of iShares Bitcoin ETF are worth $437 million. This makes it the seventh largest known holder of BlackRock's Bitcoin ETF.

What does this investment mean for Binance?

According to Binance's official disclosure, Binance currently has 5,000 employees worldwide, including 1,000 in the UAE. It has extensive business in the UAE. And MGX's AI background seems to help Binance achieve cross-innovation in the fields of artificial intelligence and blockchain.

But the more noteworthy significance of this investment is the background of the Abu Dhabi sovereign fund behind MGX. In other words, Binance has the UAE as a sovereign state as an umbrella. Before this investment was established, there was news that Binance would be acquired or invested by funds such as BlackRock in the United States. Seeking the "protection" of sovereign countries is what Binance has been doing. Neither China nor the United States has accepted Binance's surrender before. Even after being fined 4.3 billion US dollars by the United States, Binance still failed to get the protection of the United States as it wished.

Binance has already been deeply cultivated in the UAE. Since 2022, it has obtained a number of compliance licenses in the local area and has a large number of local employees. Binance CEO Richard Teng has served as CEO of the Abu Dhabi Financial Services Authority. It can be seen that the investment cooperation between Binance and the UAE has been planted a long time ago.

For Binance, this cooperation is not only a one-time acquisition of a large amount of stablecoin investment, but also injects vitality into Binance's future innovation and promotes the increase of Binance's valuation. This is also a big step for Binance's next compliance development. With the help of MGX resources and influence, Binance may be able to better meet global regulatory requirements in the future.

 What does this investment mean for the crypto industry?

 MGX's investment in Binance shows that Mubadala, the Abu Dhabi sovereign fund behind MGX, recognizes the potential of the cryptocurrency industry. This sets a benchmark for other institutional investors. It is expected that more institutions will follow up, bringing a lot of funds and resources to the industry and promoting the development of the industry. The entry of sovereign funds will also accelerate the maturity of the cryptocurrency industry in terms of compliance, supervision, and technology.

Mubadala also invested in Bitcoin spot ETFs. The active participation of major financial institutions and sovereign countries in the world in cryptocurrencies will further promote the mainstream development of the crypto industry.

Is Binance's sale of coins in January related to this investment?

Binance reduced its holdings of $8 billion in crypto assets in January 2025. There were many speculations in the industry at that time, and now it seems that this may have a lot to do with the investment. Selling virtual assets with higher risks and greater volatility is not only conducive to the valuation confirmation in investment, but also allows Binance's old shareholders to receive cash dividends before the new shareholder MCX enters.