MGX Investments Has Invested $2 Billion in Cryptocurrency Exchange Binance

Abu Dhabi-based investment firm MGX has invested $2 billion in cryptocurrency exchange Binance, potentially marking one of the biggest funding deals in the industry's history.

Abu Dhabi-based investment firm MGX has invested $2 billion in cryptocurrency exchange Binance, potentially making it one of the biggest funding deals in the industry’s history.

The transaction marks the first institutional investment in Binance and will be finalized entirely through stablecoins, Binance announced on March 12.

“We are pleased to welcome MGX, a renowned investment firm, as an investor in Binance,” said Changpeng Zhao, CEO of Binance. “This investment will empower Binance to continue spearheading innovation in the blockchain industry and foster the development of Web3 technologies.”

The investment firm has carved out a niche in emerging technology, with a focus on data centers, clean energy and AI.

With this investment in Binance, MGX aims to “enable innovation at the intersection of AI, blockchain technology and finance,” the announcement said.

“MGX is excited to be adding digital assets to our investment portfolio,” said Konstantin Klavdi, CEO of MGX. “We are impressed by Binance’s commitment to fostering a sustainable and inclusive future of finance through blockchain technology.”

Binance is the world’s largest crypto exchange based on users and daily transaction volumes. The company claims to have more than 260 million registered users. According to CoinMarketCap, there are currently 466 cryptocurrencies available on Binance.

As Cointelegraph recently reported, the exchange is considering quality control changes to its listing process following the explosion of altcoins over the past year.

Venture capital funding on the rise

2025 is shaping up to be a strong year for crypto venture capital deals. In February, 137 crypto companies raised a cumulative $1.11 billion in funding, according to data from The TIE.

After raising a combined $13.6 billion in 2024, crypto firms are expected to raise more than $18 billion this year, according to PitchBook. Much of that growth is tied to positive regulatory developments in the United States and the anticipation of more favorable financing conditions.

“As we enter into a supportive macro environment driven by stimulative US policies and the formalization of crypto regulatory frameworks, these macro tailwinds are set to drive more VC investments heading into 2025,” HashKey Capital CEO Deng Chao told Cointelegraph.

The US manufacturing PMI, long seen as a reliable predictor of the business cycle, has turned positive for the first time in more than two years. Source: Trading Economics

So far this year, the macro environment has been far from supportive as trade-war tensions and recession fears triggered a significant pullback in asset prices. However, conditions are forecast to improve in the coming months as the business cycle accelerates and global liquidity spikes pour into risk assets.