Crypto exchange giant Binance says Abu Dhabi-based investment firm MGX invested $2B in the company

The investment marks the first institutional placement in the exchange and it's also the first digital asset-focused investment for MGX, according to a press release.

Abu Dhabi-based investment firm MGX has invested $2 billion in crypto exchange giant Binance, the company announced on Wednesday.

The investment marks the first institutional placement in the exchange and it’s also the first digital asset-focused investment for MGX, according to a press release. The investment was made in stablecoins, the statement noted, though it did not specify which currency was used.

“At MGX, we are constantly seeking out groundbreaking opportunities in the global market. Having closely followed the transformative potential of digital assets, we are delighted to announce our strategic investment in Binance,” said Marc Gobel, CEO of MGX.

“As the world’s leading crypto exchange, Binance is revolutionizing the financial landscape and driving the adoption of Web3 technologies. We are excited to join forces with such a visionary company as we expand our portfolio into this rapidly evolving sector.”

Binance is the largest crypto exchange by trading volume in the world with over $20 billion daily volume, CoinMarkatCap data shows. The trading platform already established a presence in Abu Dhabi, employing around 1,000 people in the city, according to the company.

The firm’s Dubai subsidiary, Binance FZE, obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) last year, which allows the company to offer a broad range of exchange and trading services across the entire United Arab Emirates. Binance's Abu Dhabi subsidiary was granted permission to provide custody services by the Abu Dhabi Financial Services Regulatory Authority.

Richard Teng, now the CEO of Binance, previously headed the Abu Dhabi Financial Services Regulatory Authority.

BNB, the native token of the Binance-adjacent BNB Chain, jumped 3% to $574 immediately on the news before giving back the gains and sliding to $550.

UPDATE (March 11, 15:15 UTC): Adds details about Binance's regulatory licenses in the UAE and BNB price action.