UAE state-owned investment firm MGX has announced a US$2 billion investment in Binance, marking the exchange’s first institutional investment and the largest made with cryptocurrency.

The payment will be made entirely in stablecoins, though neither MGX nor Binance disclosed the stake size or which stablecoin will be used.

Binance has not responded to inquiries about the transaction’s finalization.

MGX, launched by Abu Dhabi last year, has focused on AI and previously partnered with BlackRock and Microsoft for a US$30 billion AI fund. This investment signals its expansion into cryptocurrency and blockchain.

Binance has been growing its presence in the Middle East amid regulatory challenges elsewhere. It employs around 1,000 people in the UAE and has over 260 million registered users.

The UAE has positioned itself as a crypto hub, aligning with its tech leadership ambitions.

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