Jessy (@susanliu33), Golden Finance

The rumored boots of "Binance seeks to sell" have landed.

On March 12, 2025, Binance announced a $2 billion investment (paid in stablecoin) in Abu Dhabi MGX, and MGX acquired a minority stake in Binance. The deal is Binance’s first institutional investment to date and the largest single investment in a cryptocurrency company.

After many years of hard work in the UAE, Binance has finally been tied deeper with the UAE through this $2 billion investment.

Who is MGX in Abu Dhabi?

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

MGX's board chair is Sheikh Tahnoun bin Zayed Al Nahyan. He is the younger brother of the UAE President, and also the Deputy Chief of Abu Dhabi, and the UAE security adviser.

From the investor behind MGX, 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 UAE's behavior.

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

What does it mean for Binance to invest?

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

But the significance of this investment that is more worthy of attention is the background of the Abu Dhabi sovereign fund behind MGX. In other words, Binance has the sovereignty of the UAE as a protective umbrella. Before the official establishment of this investment, there were rumors that Binance would be acquired or invested by funds such as BlackRock in the United States. The "protection" of sovereignty is something Binance has been doing. Whether it is the United States or the United States, it has not accepted Binance's surrender before, even if it is being slapped by the United States.After a fine of US$4.3 billion, Binance still failed to get asylum from the United States as he wished.

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

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

What does it mean for the crypto industry?

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

Mubadala also invested in Bitcoin spot ETFs. The active entry into encryption by major financial institutions and sovereignty in the world will also further promote the mainstreaming of the crypto industry.

Is Binance's currency selling behavior in January related to this investment?

Binance reduced its holdings of crypto assets by US$8 billion in January 2025. There were many speculations in the industry at that time, but now it seems that it may have a lot to do with the investment accepted this time. Selling virtual assets with high risk and high volatility 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.