The investment company based in Abu Dhabi MGX has invested $ 2 billion in the cryptocurrency exchange, potentially marking one of the largest financing agreements in industry history.
In an announcement on March 12, Binance said that the transaction was the first institutional investment in the cryptocurrency scholarship. Once finalized, the agreement will be fully funded by Stablecoins.
Binance refused Cointelegraph’s request to disclose what Stablecoin was used in the transaction.
The agreement marks MGX’s first foray into the cryptocurrency sector. The investment company has cut a niche in emerging technology, emphasizing data centers, clean energy and AI.
Source: Binance
By investing in Binance, MGX wishes to “allow innovation at the intersection of AI, the technology and finance of the blockchain”, said the announcement.
Binance is the largest crypto exchange in the world based on daily users and transaction volumes. The company claims to have more than 260 million registered users.
According to CoinMarketCap, there are 466 cryptocurrencies currently available on Binance. As Cointelegraph recently reported, the exchange is considering quality control changes in its registration process after the explosion of Altcoins in the past year.
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Increased venture capital funding
2025 promises to be a solid year for cryptography venture capital transactions. In February, 137 cryptographic companies raised cumulative funding of $ 1.11 billion, according to tie data.
After increasing $ 13.6 billion in 2024, cryptographic companies are expected to collect more than $ 18 billion this year, according to Pitchbook.
A large part of this growth is linked to positive regulatory developments in the United States and the anticipation of more favorable financing conditions.
“While we are entering a macro support environment motivated by American stimulating policies and the formalization of cryptographic regulatory frameworks, these macro-Aiguilles are ready to conduct more VC investments before 2025,” said Hashkey Capital CEO, Deng Chao, Cointelegraph.
The American Manufacturer PMI for a long time as a reliable predictor of the economic cycle, has become positive for the first time in more than two years. Source: Commercial economy
So far this year, the macro environment has been far from supporting itself, because tensions of trade war and fears of recession have sparked a significant decline in the prices of assets. However, the conditions should improve in the coming months as the economic cycle accelerates and the world liquidity points are spilled in risk assets.
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