Binance, the world’s largest cryptocurrency exchange by trading volume, has secured a $2 billion investment from Abu Dhabi-based investment firm MGX. This marks the first institutional placement in the exchange and MGX’s first digital asset-focused investment.

The investment, made in an unnamed stablecoin, signifies growing institutional interest in the crypto industry. Binance announced the deal through a press release but did not specify which stablecoin was used in the transaction.

Binance Expands Presence in the UAE

Binance has already established a strong presence in Abu Dhabi, where it employs around 1,000 people. The company has been expanding its footprint in the United Arab Emirates (UAE), securing key regulatory approvals.

Its Dubai-based subsidiary, Binance FZE, received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) last year. This license allows Binance to provide a broad range of crypto exchange and trading services across the UAE.

Meanwhile, Binance’s Abu Dhabi subsidiary was granted permission to offer custody services by the Abu Dhabi Financial Services Regulatory Authority.

Richard Teng’s Role in Binance’s UAE Expansion

The investment also underscores the significance of Binance’s relationship with the UAE’s regulatory landscape. Richard Teng, who became Binance’s CEO in 2023 after Changpeng “CZ” Zhao stepped down, was previously the head of the Abu Dhabi Financial Services Regulatory Authority.

His leadership has played a crucial role in strengthening Binance’s regulatory compliance and regional expansion in the Middle East.

BNB Price Reacts to the News

Following the investment announcement, BNB, the native token of the Binance-adjacent BNB Chain, surged 3% to $574. However, the price later retraced to $550 as the initial market reaction settled.

Despite the pullback, the investment signals increased institutional confidence in Binance and its role in the evolving crypto ecosystem.

This deal highlights Abu Dhabi’s growing influence in the digital asset sector and Binance’s continued dominance as the world’s leading crypto exchange.