Abu Dhabi-based funding agency MGX has invested $2 billion in cryptocurrency alternate Binance, probably marking one of many greatest funding offers within the trade’s historical past.
In a March 12 announcement, Binance mentioned the transaction was the primary institutional funding within the cryptocurrency alternate. As soon as finalized, the deal can be funded completely by stablecoins.
Binance declined Cointelegraph’s request to reveal what stablecoin was used within the transaction.
The deal marks MGX’s first foray into the cryptocurrency sector. The funding firm has carved out a distinct segment in rising know-how, with a deal with knowledge facilities, clear power and AI.
Supply: Binance
By investing in Binance, MGX desires to “allow innovation on the intersection of AI, blockchain know-how and finance,” the announcement mentioned.
Binance is the world’s largest crypto alternate primarily based on customers and day by day transaction volumes. The corporate claims to have greater than 260 million registered customers.
In line with CoinMarketCap, there are 466 cryptocurrencies at the moment accessible on Binance. As Cointelegraph lately reported, the alternate is contemplating high quality management modifications to its itemizing course of following the explosion of altcoins over the previous 12 months.
Associated: VC Roundup: Traders proceed to again DePIN, Web3 gaming, layer-1 RWAs
Enterprise capital funding on the rise
2025 is shaping as much as be a robust 12 months for crypto enterprise capital offers. In February, 137 crypto firms raised a cumulative $1.11 billion in funding, in line with knowledge from The TIE.
After elevating a mixed $13.6 billion in 2024, crypto corporations are anticipated to boost greater than $18 billion this 12 months, in line with PitchBook.
A lot of that development is tied to optimistic regulatory developments in the US and the anticipation of extra favorable financing circumstances.
“As we enter right into a supportive macro atmosphere pushed by stimulative US insurance policies and the formalization of crypto regulatory frameworks, these macro tailwinds are set to drive extra VC investments heading into 2025,” HashKey Capital CEO Deng Chao advised Cointelegraph.
The US manufacturing PMI, lengthy seen as a dependable predictor of the enterprise cycle, has turned optimistic for the primary time in additional than two years. Supply: Buying and selling Economics
To this point this 12 months, the macro atmosphere has been removed from supportive as trade-war tensions and recession fears triggered a major pullback in asset costs. Nonetheless, circumstances are forecast to enhance within the coming months because the enterprise cycle accelerates and world liquidity spikes pour into danger property.
Journal: The key of pitching to male VCs: Feminine crypto founders blast off