Abu Dhabi’s MGX backs Binance with $2B stablecoin investment

Abu Dhabi-based investment agency MGX has invested $2 billion in cryptocurrency alternate Binance, probably marking one of many largest funding offers within the business’s historical past.

In a March 12 announcement, Binance stated the transaction was the primary institutional investment within the cryptocurrency alternate. As soon as finalized, the deal will likely be funded fully via stablecoins.

Binance declined Cointelegraph’s request to reveal what stablecoin was used within the transaction.  

The deal marks MGX’s first foray into the cryptocurrency sector. The investment firm has carved out a distinct segment in rising know-how, with a deal with information facilities, clear power and AI.

By investing in Binance, MGX needs to “allow innovation on the intersection of AI, blockchain know-how and finance,” the announcement stated.

Binance is the world’s largest crypto alternate primarily based on customers and every day transaction volumes. The corporate claims to have greater than 260 million registered customers. 

In accordance with CoinMarketCap, there are 466 cryptocurrencies at the moment obtainable on Binance. As Cointelegraph recently reported, the alternate is contemplating high quality management adjustments to its itemizing course of following the explosion of altcoins over the previous yr.

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Enterprise capital funding on the rise

2025 is shaping as much as be a robust yr for crypto enterprise capital offers. In February, 137 crypto corporations raised a cumulative $1.11 billion in funding, in keeping with information from The TIE. 

After elevating a mixed $13.6 billion in 2024, crypto corporations are anticipated to boost greater than $18 billion this yr, in keeping with PitchBook. 

A lot of that progress is tied to optimistic regulatory developments in the USA and the anticipation of extra favorable financing circumstances. 

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

To this point this yr, the macro setting has been removed from supportive as trade-war tensions and recession fears triggered a big pullback in asset costs. Nevertheless, circumstances are forecast to enhance within the coming months because the business cycle accelerates and world liquidity spikes pour into danger belongings.

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