It is good to see when institutional investors come forward and invest in the Crypto industry. Ultimately this is what we all expect because with institutional investors we can expect bigger money inflow in the market.
The crypto market is an immature market where things are not well organised and this is why it will need some time to organise. Because of this many institutional investors might not be interested in putting their money in this market however looks like the scenario is not changing.
MGX, a company in Abu Dhabi, has invested 2 billion US dollars on Binance exchange. The exchange has announced it and as per the exchange, this is the first ever institutional investment in any crypto exchange.
Crypto exchange giant Binance said on Wednesday that Abu Dhabi-based investment firm MGX invested $2 billion in the company. Binance said it was the first institutional investment in the crypto exchange, and the investment was made in an unnamed stablecoin.
This investment has been done through the stable coin and for the first time ever in any crypto exchange. It is the top international crypto exchange with the daily trading volume of over twenty billion dollars. After this investment news there was some spike on the BNB coin in the market and it is certainly a positive news in the crypto market.
MGX is a technology investment company focused on accelerating the development and adoption of AI and advanced technologies through world-leading partnerships in the United Arab Emirates and globally
The company itself is managing the investment portfolios through the technology and now with this investment they must be trying to stay ahead on the race where digital money is getting more traction worldwide. While the Bitcoin and Ethereum spot ETF's are already available in us so in Dubai this company must be trying to build something and probably this is just the beginning of that big development.
Dubai is one of the places where crypto companies are getting favourable environment/ecosystem and support from the government so now this will get a boost to the industry as well as the Binance exchange there. This will also open the door for many other such companies to choose Crypto exchanges as an investment option. Maybe this will strengthen the crypto exchanges to be more compliant because that is the criteria most companies will look into before putting their money into the exchange.