Abu Dhabi-based investment firm MGX has invested $2 billion in cryptocurrency exchange Binance, potentially marking one of the biggest funding deals in the industry’s history.

In a March 12 announcement, Binance said the transaction was the first institutional investment in the cryptocurrency exchange. Once finalized, the deal will be funded entirely through stablecoins.

Binance declined Cointelegraph’s request to disclose what stablecoin was used in the transaction.  

The deal marks MGX’s first foray into the cryptocurrency sector. The investment company has carved out a niche in emerging technology, with a focus on data centers, clean energy and AI.

Source: Binance

By investing in Binance, MGX wants to “enable innovation at the intersection of AI, blockchain technology and finance,” the announcement said.

Binance is the world’s largest crypto exchange based on users and daily 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 to its listing process following the explosion of altcoins over the past year.

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Venture capital funding on the rise

2025 is shaping up to be a strong year for crypto venture capital deals. In February, 137 crypto companies raised a cumulative $1.11 billion in funding, according to data from The TIE. 

After raising a combined $13.6 billion in 2024, crypto firms are expected to raise more than $18 billion this year, according to PitchBook. 

Much of that growth is tied to positive regulatory developments in the United States and the anticipation of more favorable financing conditions. 

“As we enter into a supportive macro environment driven by stimulative US policies and the formalization of crypto regulatory frameworks, these macro tailwinds are set to drive more VC investments heading into 2025,” HashKey Capital CEO Deng Chao told Cointelegraph.

The US manufacturing PMI, long seen as a reliable predictor of the business cycle, has turned positive for the first time in more than two years. Source: Trading Economics

So far this year, the macro environment has been far from supportive as trade-war tensions and recession fears triggered a significant pullback in asset prices. However, conditions are forecast to improve in the coming months as the business cycle accelerates and global liquidity spikes pour into risk assets.

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