Abu Dhabi’s MGX backs Binance with $2B stablecoin investment

Abu Dhabi-based concern steadfast MGX has invested $2 cardinal successful cryptocurrency speech Binance, perchance marking 1 of the biggest backing deals successful the industry’s history.

In a March 12 announcement, Binance said the transaction was the archetypal organization concern successful the cryptocurrency exchange. Once finalized, the woody volition beryllium funded wholly done stablecoins.

Binance declined Cointelegraph’s petition to disclose what stablecoin was utilized successful the transaction.  

The woody marks MGX’s archetypal foray into the cryptocurrency sector. The concern institution has carved retired a niche successful emerging technology, with a absorption connected information centers, cleanable vigor and AI.

Source: Binance

By investing successful Binance, MGX wants to “enable innovation astatine the intersection of AI, blockchain exertion and finance,” the announcement said.

Binance is the world’s largest crypto speech based connected users and regular transaction volumes. The institution claims to person much than 260 cardinal registered users. 

According to CoinMarketCap, determination are 466 cryptocurrencies presently disposable connected Binance. As Cointelegraph precocious reported, the speech is considering prime power changes to its listing process pursuing the detonation of altcoins implicit the past year.

Related: VC Roundup: Investors proceed to backmost DePIN, Web3 gaming, layer-1 RWAs

Venture superior backing connected the rise

2025 is shaping up to beryllium a beardown twelvemonth for crypto task superior deals. In February, 137 crypto companies raised a cumulative $1.11 billion successful funding, according to information from The TIE. 

After raising a combined $13.6 cardinal successful 2024, crypto firms are expected to rise much than $18 cardinal this year, according to PitchBook. 

Much of that maturation is tied to affirmative regulatory developments successful the United States and the anticipation of much favorable financing conditions. 

“As we participate into a supportive macro situation driven by stimulative US policies and the formalization of crypto regulatory frameworks, these macro tailwinds are acceptable to thrust much VC investments heading into 2025,” HashKey Capital CEO Deng Chao told Cointelegraph.

The US manufacturing PMI, agelong seen arsenic a reliable predictor of the concern cycle, has turned affirmative for the archetypal clip successful much than 2 years. Source: Trading Economics

So acold this year, the macro situation has been acold from supportive arsenic trade-war tensions and recession fears triggered a important pullback successful plus prices. However, conditions are forecast to amended successful the coming months arsenic the business rhythm accelerates and planetary liquidity spikes determination into hazard assets.

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