What is the mystery of MGX, which invests $2 billion in Binance?

Author: Azuma, Odaily Planet Daily

On the evening of March 12, a big news about Binance financing quickly ignited the industry.

Binance officially announced that it has reached a US$2 billion investment agreement with Abu Dhabi-based artificial intelligence and advanced technology investment company MGX, which will acquire a minority stake in Binance. This investment is the first institutional investment accepted by Binance so far, and it is also the largest single financial investment in cryptocurrency history, and may be the largest ever paid investment in cryptocurrency (stablecoin).

Who is MGX? Why are you so rich and powerful and able to invest in a company of Binance with one move...

There is very little public information on the official website of MGX, but from these few announcements, we can clearly draw the specific background of the institution.

Official information shows that MGX was founded on January 22, 2024 and is positioned as a technology investment company focusing on accelerating the development and adoption of AI and advanced technologies by establishing world-leading partnerships in the United Arab Emirates and the world. MGX focuses on investing in areas where AI can provide value and economic impact at scale, including semiconductors, infrastructure, software, technology-enabled services, life sciences and physical AI.

But this is not the focus.

Official information mentioned that the chairman of MGX's board of directors is Sheikh Tahnoun bin Zayed Al Nahyan (hereinafter referred to as Tahnoun). Tahnon is also the Deputy Chief of Abu Dhabi and the UAE National Security Advisor.

From another perspective, the identity of Sheikh Tahnon Zayed Al Nahyan can be explained more clearly. He is the son of Sheikh Zayed Bin Sultan Al-nahayan, the founding president of the United Arab Emirates, and the younger brother of Sheikh Mohamed bin Zayed Al Nahyan (hereinafter referred to as Mohamed).

Bloomberg described Tahnon in a report in 2024, who is in charge of more than $1.5 trillion in state-owned assets and private funds. Meeting him (even if it’s only 10 minutes) can be a huge opportunity for any fund manager or financial person.

Time magazine even chose it as one of the 100 most important people in the AI ​​field in 2024 - it can only be said that money is really omnipotent.

In terms of execution, MGX's CEO is Ahmed Yahia Al Idrissi, who has served as CEO for another UAE state-owned investment company, MUBADALA, with more than 30 years of operational and investment experience.

According to data, Mubadala and another UAE state-owned company, G42, are both basic partners at the beginning of MGX's establishment, Wikipedia, which gave a more straightforward explanation. MGX was jointly initiated by these two entities, and the chairman of the board of directors of these two institutions is Mohamed and Tahnon.

In short, MGX is a thorough UAE sovereign investment institution, behind which is one of the richest families in the Middle East, and even the entire planet.

In addition, in the only official announcements of MGX, the cooperative relationship between MGX and many other giant players such as BlackRock, Microsoft, and GIP was also mentioned.

More details about the financing are still to be disclosed, but according to Binance's official announcement, Binance's current CEO Richard Teng, who had previously served as CEO of the Financial Services Regulatory Authority of Abu Dhabi, may have played a key role in this financing.

In short, with the completion of this financing, Binance's compliance process in the Middle East market will open a new chapter.

Since its founding of Binance in 2017, the startup, which was born in the emerging market of cryptocurrencies, has become a giant that cannot be ignored in the mainstream world with the rapid development of the cryptocurrency market.

An old era has quietly come to an end, but a new era has begun.