$BNB Pumps After Binance Secures 'Single Largest Investment' In Crypto From Abu Dhabi's MGX

Cryptocurrency exchange giant Binance has secured a multi-billion-dollar investment from Abu Dhabi-based MGX, a company specializing in artificial intelligence and technology, calling it the "single largest investment into a crypto company."

The announcement pumped the BNB token's price to $577, representing a nearly 6% spike in the day as other major cryptocurrencies were down due to a broader financial market downtrend.

The crypto coin issued by Binance was trading as low as $551 before news of the massive investment hit social media and spread across crypto communities.

Binance Hails Big Milestone

In its announcement, Binance revealed that the $2 billion investment was made in stablecoin payments, but the exchange did not specify which stablecoin was used in the transaction.

"MGX's investment in Binance reflects our commitment to advancing blockchain's transformative potential for digital finance," MGX Managing Director and CEO Ahmed Yahia said in a statement.

For its part in the announcement, Binance CEO Richard Teng said the investment marks a "significant milestone for the crypto industry and for Binance."

He added that the exchange is committed to building a "more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection" and is looking forward to collaborating with global regulators for forward-thinking policies for the industry.

Binance said it has established a "substantial footprint" in the United Arab Emirates, and the MGX investment is just among its efforts to expand its reach in the region.

Binance in the UAE

The latest development around Binance's activities in the UAE comes less than a year after the leading crypto exchange said its Dubai subsidiary, Binance FZE, secured a virtual asset service provider (VASP) license from the city's regulatory authority.

With the license, Binance is allowed to provide services related to digital assets to a broad range of customers. Before the license was provided, Binance FZE was only operating on a minimum viable product (MVP) license.

The UAE's Crypto Dreams

MGX's Binance investment also highlights the UAE's efforts in becoming a global blockchain and crypto hub amid intensifying competition after the United States' Donald Trump rose to power earlier this year.

As part of the country's bid to attract more crypto companies and strengthen its place in the global race, Dubai is hosting the CryptoExpo in May.

The said event has already confirmed the speakers of some of the industry's most prominent leaders, including OKX CEO Rifad Mahasneh, Binance General Manager Stephanie Emile, Bitcoin Magazine Editor in Chief Aaron Van Wirdum, Federico Tenga of Bitfinex's research and development unit, and Bitcoin.com CEO Corbin Fraser.

Originally published on IBTimes