Binance received $2 billion in investment and surrendered to the UAE

The rumors about "Binance seeking to sell" have been confirmed.

On March 12, 2025, Binance announced that it had received a $2 billion investment (paid in stablecoins) from Abu Dhabi MGX, which acquired a minority stake in Binance. This transaction is Binance’s first institutional investment to date and the largest single investment in a cryptocurrency company.

After years of deep cultivation in the UAE, Binance has finally become more deeply tied to the UAE through this US$2 billion investment.

Who is Abu Dhabi MGX?

MGX is a technology investment company announced by the Abu Dhabi Artificial Intelligence and Advanced Technology Committee (AIATC) in March 2024. It is jointly established by Abu Dhabi sovereign fund Mubadala and G42 Group, with funds mainly provided by the UAE government and some global partners. It plays an important role in the field of artificial intelligence and advanced technology.

MGX's chairman of the board is Sheikh Tahnoun bin Zayed Al Nahyan, son of the late UAE's founding father and brother of the current UAE president, Deputy Ruler of Abu Dhabi and UAE National Security Advisor.

Judging from the investor behind MGX - the Abu Dhabi sovereign fund, and the actual controller - the deputy chief of Abu Dhabi, it can be seen that MGX's investment behavior can basically be equated with the behavior of the UAE government .

A more noteworthy detail is that Abu Dhabi sovereign fund Mubadala also holds a BTC spot ETF. According to Reuters, as of February 2025, Mubadala's holdings in the iShares Bitcoin ETF were worth $437 million. This makes it the seventh largest known holder of BlackRock's Bitcoin ETF.

What does this investment mean for Binance?

According to Binance’s official disclosure, Binance currently has 5,000 employees worldwide, including 1,000 in the UAE. It has extensive business in the UAE. MGX’s AI background seems to help Binance achieve cross-innovation in the fields of artificial intelligence and blockchain.

But the more noteworthy significance of this investment is the background of the Abu Dhabi sovereign fund behind MGX. In other words, Binance has the protection of the sovereign state of the United Arab Emirates. Before this investment was officially established, there were rumors that Binance would be acquired or invested by funds such as BlackRock in the United States. Seeking the "protection" of sovereign countries is what Binance has been doing. Neither China nor the United States has accepted Binance's surrender before. Even after being fined 4.3 billion US dollars by the United States, Binance still failed to get the protection of the United States as it wished.

Binance has already been deeply involved in the UAE. Since 2022, it has obtained a number of compliance licenses in the UAE and has a large number of local employees. Binance CEO Richard Teng was once the CEO of the Abu Dhabi Financial Services Authority. It can be seen that the investment cooperation between Binance and the UAE has been planted a long time ago.

For Binance, this cooperation is not only a one-time acquisition of a large amount of stablecoin investment, but also injects vitality into Binance's future innovation and promotes the increase of Binance's valuation. It is also a big step for Binance's future compliance development. With the help of MGX's resources and influence, Binance may be able to better meet global regulatory requirements in the future.

What does this investment mean for the crypto industry ?

MGX's investment in Binance shows that Mubadala, the Abu Dhabi sovereign fund behind MGX, recognizes the potential of the cryptocurrency industry. This sets a benchmark for other institutional investors. It is expected that more institutions will follow suit, bringing a large amount of funds and resources to the industry and promoting its development. The entry of sovereign funds will also prompt the cryptocurrency industry to mature faster in terms of compliance, supervision, and technology.

Mubadala has also invested in a Bitcoin spot ETF. The active participation of major financial institutions and sovereign states in the world in cryptocurrencies will further promote the mainstream development of the crypto industry.

Is Binance’s sale of coins in January related to this investment?

In January 2025, Binance sold off $8 billion worth of crypto assets. There were many speculations in the industry at the time, but now it seems that this may have a lot to do with the investment. Selling high-risk and volatile virtual assets is not only conducive to valuation confirmation in investment, but also allows Binance's old shareholders to receive cash dividends before the new shareholder MCX enters.