Abu Dhabi-based investment firm MGX has made a significant step into the cryptocurrency sector by investing $2 billion in Binance, the world's largest crypto exchange. This deal, announced on March 12, marks the first institutional investment in Binance’s history and will be funded entirely through stablecoins, though the specific stablecoin used has not been disclosed. MGX aims to drive innovation at the intersection of AI, blockchain technology, and finance through this investment. Binance boasts over 260 million registered users and supports 466 cryptocurrencies, indicating its significant presence in the crypto market. The increased venture capital interest in the crypto space is expected to soar, with predictions of crypto firms raising more than $18 billion in 2025, fueled by favorable regulatory developments in the United States and improved macroeconomic conditions. As conditions improve from recent downturns, investments in the crypto sector are likely to increase further, indicating a positive outlook for venture capital in this space.

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