Binance Secures $2 Billion Investment From Abu Dhabi Firm—Paid in Stablecoins

Binance, the world's largest cryptocurrency exchange, announce Wednesday that it has secured a $2 billion investment from the Abu Dhabi-based AI and tech investor MGX—a sovereign wealth fund.

The transaction was fully paid in stablecoins, according to Binance, and represents the exchange's first institutional investment and what it says is the largest single investment in a crypto firm to date. In a statement, Binance CEO Richard Teng framed the investment as "a significant milestone for the crypto industry and for Binance."

"MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance. As institutional adoption accelerates, the need for secure, compliant, and scalable blockchain infrastructure and solutions has never been greater," said MGX CEO and Managing Director Ahmed Yahia, in a statement. "Together, we are committed to building a more inclusive and robust digital finance ecosystem.”

Binance said that approximately 20% of its 5,000-person workforce is based out of the United Arab Emirates. Changpeng "CZ" Zhao, the founder and former CEO of Binance, has UAE citizenship.

The exchange is substantially larger than rivals in terms of trading volume, with CoinGecko showing over $23 billion worth of trading over the last 24 hours compared to about $4 billion for the U.S.-based Coinbase and just under $4 billion for OKX.

Binance has faced compliance issues in some parts of the world, including the United States, United Kingdom, and Canada. In November 2023, Binance agreed to a pay a $4.3 billion fine to settle U.S. charges, with Zhao himself paying a $50 million personal fine and serving four months in prison in early 2024.

Binance is still facing a lawsuit from the SEC, though the two sides were granted a 60-day pause in February as the regulator rethinks its crypto enforcement strategy and dumps several lawsuits and investigations under President Trump.

The firm's primary exchange agreed to stop operating in the U.S., though its Binance.US subsidiary continues to serve U.S. users. Just last month, Binance.US said that it restored full U.S. dollar services after 19 months, after shutting off bank connections due to regulatory uncertainty.

Editor's note: This story is breaking and will be updated with additional detail.