Binance Receives $2B Investment From MGX, Pumping BNB Token's Price by 6%

The announcement pumped the BNB token's price to $577, representing a nearly 6% spike in the day as other major cryptocurrencies were down due to a broader financial market downtrend.

The announcement, which hit social media early Monday, may have ultimately pumped the BNB token’s price to $577, representing a nearly 6% spike in the day as other major cryptocurrencies were down due to a broader financial market downtrend.

For context, the crypto coin, issued by Binance, was trading as low as $551 before the news of the massive investment began circulating in crypto communities.

In its statement, Binance said the investment was made in stablecoin payments, but the exchange did not specify which stablecoin was used in the transaction.

"MGX's investment in Binance underscores our commitment to advancing blockchain's transformative potential for digital finance," MGX Managing Director and CEO Ahmed Yahia said in a statement.

For its part in the announcement, Binance CEO Richard Teng said the investment marks a "significant milestone for the crypto industry and for Binance."

"We are committed to building a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection. We look forward to engaging with global regulators on developing forward-thinking policies for the industry," Teng added.

Binance has established a "substantial footprint" in the United Arab Emirates, and the MGX investment is just among its efforts to expand its reach in the region, the exchange said.

As the leading crypto exchange pivots to Web3, it has also been expanding its footprint in the Middle East. Earlier this year, Binance said its Dubai subsidiary, Binance FZE, secured a virtual asset service provider (VASP) license from the city's regulatory authority.

The license allows Binance to provide services related to digital assets to a broad range of customers. Before the license was provided, Binance FZE was operating on a minimum viable product (MVP) license.

The development also comes as the UAE continues its efforts to become a global blockchain and crypto hub amid intensifying competition after the United States' Donald Trump earlier this year.

The country's financial hub, Dubai, is set to host the CryptoExpo in May, with the event already confirming the speakers of some of the industry's most prominent leaders.

Some of the confirmed speakers include OKX CEO Rifad Mahasneh, Binance General Manager Stephanie Emile, Bitcoin Magazine Editor in Chief Aaron Van Wirdum, Federico Tenga of Bitfinex's research and development unit, and Bitcoin.com CEO Corbin Fraser.