Binance secures $2 billion from Abu Dhabi’s MGX
Key Takeaways
Abu Dhabi’s MGX invested $2 billion in Binance, marking the largest-ever crypto firm funding.
The funding offers MGX a minority stake in Binance to help blockchain expertise growth.
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Binance introduced Wednesday that the corporate has secured $2 billion from MGX, the Abu Dhabi-based funding agency that backed Trump’s $100 billion AI plan alongside OpenAI, SoftBank Group, and Oracle as a part of the Stargate initiative.
The funding is the biggest crypto firm funding so far and the primary institutional funding within the main crypto alternate, in accordance with Binance.
The funding, made in stablecoin, offers MGX a minority stake in Binance as a part of its technique to help blockchain expertise growth. Binance at present employs about 1,000 of its 5,000 world workforce within the UAE.
Discussing the transfer, Ahmed Yahia, Managing Director & CEO of MGX, stated that the funding demonstrates MGX’s dedication to actively supporting the event and implementation of blockchain expertise. The agency believes that blockchain expertise has the ability to basically change digital finance.
“As institutional adoption accelerates, the need for secure, compliant, and scalable blockchain infrastructure and solutions has never been greater,” stated Yahia. “Binance has long been a driving force in cryptocurrency innovation, from exchange technology and tokenization to staking and payments.”
According to Binance CEO Richard Teng, MGX’s $2 billion funding is “a significant milestone for the crypto industry and for Binance.”
“Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection. Binance remains committed to working with regulators worldwide to establish transparent, responsible, and forward-thinking policies for the crypto industry,” Teng stated.
YZi Labs’ AI focus
The announcement comes at a time when Binance Labs, now rebranded as YZi Labs, has expanded its focus to incorporate synthetic intelligence (AI) alongside its conventional blockchain and web3 investments.
Earlier this month, YZi Labs introduced an funding in Tensorplex Labs, a pioneer in decentralized AI, aiming to speed up innovation on the intersection of blockchain and AI. Last month, the entity made a strategic funding in Vana, a crypto-AI startup targeted on knowledge possession and decentralization. Binance co-founder CZ joined Vana as an advisor.
MGX is primarily targeted on AI and superior applied sciences. The firm has been actively investing in AI-driven firms, together with OpenAI, Elon Musk’s xAI, and Databricks.
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