The Abu Dhabi-based investment firm MGX has announced a $2 billion investment in the cryptocurrency exchange Binance, which could be one of the largest funding arrangements in the history of the sector.
In a March 12 statement, Binance revealed that this transaction represents its first institutional investment. When completed, the deal will be financed entirely through stablecoins.
Binance has chosen not to disclose which stablecoin was utilized for this investment.
This marks MGX’s initial entry into the cryptocurrency realm. The investment firm has established a presence in emerging technologies, particularly focusing on data centers, clean energy, and artificial intelligence.
Source: Binance
Through this investment in Binance, MGX aims to “promote innovation at the crossroads of AI, blockchain technology, and finance,” as stated in the announcement.
Binance stands as the largest cryptocurrency exchange globally, both in terms of users and daily transaction volumes, claiming over 260 million registered users.
Currently, Binance offers a selection of 466 different cryptocurrencies, according to statistics from CoinMarketCap. Additionally, there are ongoing discussions about implementing quality control measures for the listing process due to the surge of altcoins in the past year.
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Rising Venture Capital Funding
The year 2025 is expected to witness robust activity in crypto venture capital investments. Data from The TIE indicates that in February alone, 137 cryptocurrency firms raised a total of $1.11 billion.
Having already secured $13.6 billion in 2024, crypto firms are projected to surpass $18 billion in funding this year, as per PitchBook’s analysis.
This growth is largely attributed to favorable regulatory developments in the United States and the expectation of improved financing conditions.
“As we transition into a supportive macro environment influenced by stimulative U.S. policies and the establishment of clear crypto regulations, these favorable trends are poised to enhance VC investments as we move into 2025,” stated HashKey Capital CEO Deng Chao.
The U.S. manufacturing PMI, traditionally a reliable indicator of the business cycle, has seen a positive shift for the first time in over two years. Source: Trading Economics
Although the macro environment has not been particularly accommodating this year, with trade tensions and recession concerns leading to a notable decline in asset prices, forecasts suggest an upswing in the months ahead as the business cycle accelerates and liquidity increases, channeled into risk assets.
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