Binance Lands Biggest-Ever Crypto-Related Investment Funded In Stablecoins

Binance has secured a $2 billion investment from Abu Dhabi tech investor MGX.

The cryptocurrency platform says the deal, announced Wednesday (March 12), is noteworthy for two reasons: it’s the first institutional investment in Binance and the largest crypto-related deal ever conducted using stablecoins.

According to a news release, the deal gives MGX a minority stake in Binance, part of the former’s effort to support artificial intelligence (AI)-powered blockchain solutions, decentralized finance and tokenized digital economies.

“With Binance’s 260 million+ registered users and over $100 trillion in cumulative trading volume, this move reinforces blockchain’s role in global finance,” the release said.

Ahmed Yahia, CEO of MGX, added that the investment underscores the importance of secure and compliant blockchain infrastructure.

“Institutional adoption of digital finance is accelerating,” Yahia said. “Binance has led innovation in exchange technology, tokenization, staking and payments. Together, we are committed to building a more inclusive and robust digital finance ecosystem.”

Binance CEO Richard Teng argued that the investment marks a pivotal moment for the crypto industry, saying the collaboration will “shape the future of digital finance.”

“Binance remains committed to compliance, security, and fostering a transparent regulatory framework for the crypto industry worldwide,” Teng added.

The company’s announcement comes as the cryptocurrency landscape is shifting in the U.S. The regulatory crackdown Binance got caught up in two years ago appears to have faded, with the Securities and Exchange Commission (SEC) halting a host of recent legal action against companies in the crypto sector.

Against this backdrop, Binance’s U.S. offshoot began once again accepting U.S. dollar deposits and withdrawals.

Binance.US — an entity launched by crypto giant Binance to service U.S. customers in 2019 — suspend U.S. dollar deposits and withdrawals in June 2023 after the SEDC took legal action against Binance, its founder and CEO Changpeng Zhao, and the operator of its U.S. exchange.

That regulator had alleged the company had artificially inflated its trading volumes, diverted customer funds, failed to keep American users off its platform and misled investors about its market surveillance controls.

In other stablecoin news, PYMNTS wrote recently about the use of these digital currencies by FinTechs, noting that banks have been more cautious in their approach, due to a mix of regulatory issues, risk appetite and structural agility.

“FinTechs, unburdened by the strictures of traditional banking charters, are leveraging their regulatory flexibility, customer demand and technological prowess to push forward,” that report said. “Meanwhile, banks, which must follow compliance requirements and conservative risk frameworks, are moving cautiously — if at all — into the crypto space.”