MGX of Abu Dhabi to invest $ 2 billion in Crypto Exchange Binance

The state investment firm Emirati MGX announced an investment of $ 2 billion in Binance, in which it marks the first institutional investment of cryptocurrency exchange and one of the largest ever made in the cryptographic industry.

In Joint press releaseCompanies said the minority participation would be paid in Stablecoins, so it is the “largest investment” paid in the cryptocurrency. Stablecoins are a type of digital asset designed to contain a constant value, usually with a plug for a fiduciary currency.

Abu Dhabi launched MGX’s investment firm last year with an approach to AI technology. In September, MGX associated with the tastes of Black rock and Microsoft To launch a background of more than $ 30 billion, but had not yet invested in the cryptocurrency industry and blockchain sectors.

“MGX’s investment in Binance reflects our commitment to advance in the blockchain transformative potential for digital finances,” said Ahmed Yahia, managing director and CEO of MGX, in a statement.

The press release added that “by associating with the leader of the industry, MGX aims to allow innovation at the intersection of AI, blockchain technology and finance.”

Binance and MGX did not immediately comment on the size of the stake or what stablecoin would be used for payment. Binance has not responded to an investigation into whether the agreement had been completed.

As part of the widest ambitions of the EAU to become a Global Technology Leaderhas been becoming a Crypto hub regional.

Binance, the largest cryptocurrency exchange in the world, has cultivated his footprint from the Middle East As faced regulatory obstacles and application measures in other jurisdictions in recent years,

According to the press release, Binance uses approximately 1,000 of its global workforce of approximately 5,000 in the EAU. He adds that it now has more than 260 million registered users and has exceeded $ 100 billion in cumulative negotiation volume.

The Binance CEO, Richard Teng, is scheduled to participate in a panel session in Converge Live in CNBC Singapore at 2:40 pm Local time (2:40 am et) Thursday.