Binance and MGX said in statements posted on their website that the investment was made in stablecoin – a type of cryptocurrency pegged to a fiat currency such as the dollar.
A spokesperson for Binance declined to comment on which stablecoin the payment was made in.
The United Arab Emirates is aiming to become a global centre for digital assets, including the crypto industry, and has been trying to lure some of the biggest firms in the sector to build locally as part of a plan to diversify its economy.
It is also making a push for AI, led by the state-backed G42 and by MGX, in which the state-owned $330 billion wealth fund Mubadala is a partner.
“MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” said Ahmed Yahia, managing director and CEO of MGX, in the statement.
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The move is the latest sign of Binance deepening its ties with the UAE. Binance has long said that it is in the process of choosing a location for its headquarters, and in Wednesday’s announcement it said it had a “substantial footprint” in the UAE, employing around 1,000 of its 5,000 total staff there. Binance CEO Richard Teng was previously head of Abu Dhabi’s Financial Services Authority.
