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Abu Dhabi’s MGX to invest $2bn in crypto exchange Binance

Emirates investment fund to buy minority stake with stablecoins

Abu Dhabi’s MGX is ploughing $2bn into Binance in one of the digital asset industry’s largest-ever deals and the first institutional investment into the world’s biggest cryptocurrency exchange.

The minority stake would be paid for in stablecoins, Binance and MGX said on Wednesday, although they declined to identify which they would use. Stablecoins are a type of digital cash, designed to hold a constant value per coin and are typically pegged to a sovereign currency like the dollar.

Binance and MGX declined to comment on the size of the stake, and Binance declined to comment on whether the deal had been completed.

The exchange, which typically handles deals with a nominal value of $20bn a day, has made the UAE one of its main bases as it seeks to rebuild its reputation.