UAE’s MGX Backs Binance With $2B Stablecoin Investment

UAE’s MGX Backs Binance With $2B Stablecoin Investment

Binance landed a $2 billion investment from MGX, a state-backed UAE investment firm, marking one of the largest capital injections into a crypto company. The deal was made in stablecoins, with MGX acquiring a minority stake, though Binance declined to disclose the valuation or which stablecoins were used.

MGX is headquartered in Abu Dhabi and led by Sheikh Tahnoon Bin Zayed Al Nahyan, a key figure in the UAE’s sovereign wealth fund. "As institutional adoption accelerates, the need for secure, compliant, and scalable blockchain infrastructure and solutions has never been greater," said MGX CEO Ahmed Yahia.

The investment further strengthens Binance’s presence in the Gulf, where it already has 1,000 employees and operates offices in Abu Dhabi and Dubai. Despite long resisting a formal headquarters, Binance executives have praised the UAE’s crypto regulatory framework and hosted major industry events there.

This funding comes as Binance moves past regulatory challenges, including a $4.3 billion DOJ settlement in 2023 and ongoing SEC litigation, which was recently paused. CEO Richard Teng, who replaced Changpeng Zhao after his resignation, has focused on reshaping Binance’s image into a compliant financial firm.

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Hyperliquid Lost $4 Million After a 50x "Toxic" Ethereum Trade

Decentralized exchange Hyperliquid suffered a $4 million loss after a trader placed a $285 million leveraged bet on Ethereum, which led to an unstable position. The trader, identified by wallet 0xf3f4, used 50x leverage to amplify their exposure but later withdrew collateral to push their liquidation price higher.

As the Hyperliquidity Provider (HLP) vault moved to liquidate the position, it was left holding a toxic trade, forcing Hyperliquid to absorb the loss. The HLP vault, a community-owned fund that supports market-making, has now lost all profits since February 16, marking its worst day since launching in 2023.

Hyperliquid insists there was no exploit or hack, but the incident exposed risks in high-leverage trading strategies. In response, the exchange has lowered maximum leverage to 40x for Bitcoin and 25x for Ethereum, while raising maintenance margin requirements to prevent similar losses.

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Russia Proposes 3-Year Crypto Trading Experiment

The Bank of Russia has proposed a three-year experimental regime allowing select investors to legally trade Bitcoin and other cryptocurrencies. The plan, announced on March 12, would limit participation to individuals with at least $1.1 million in securities and deposits. The central bank says the program will help increase transparency in Russia’s digital asset market.

Retail crypto payments will remain banned, as the government still does not recognize cryptocurrency as legal tender. However, officials may allow select companies to participate, raising speculation about a Russian equivalent to Michael Saylor's MicroStrategy. The proposal follows Russia’s earlier attempts to experiment with crypto in foreign trade, despite strict domestic restrictions.

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SEC Delays Crypto ETF Filings as It Awaits New Chairman

The SEC has postponed decisions on several crypto ETF applications, including Dogecoin, Solana, XRP, and Litecoin, citing a lack of leadership. President Trump nominated Paul Atkins as the new SEC chair in December, but his confirmation hearing has not yet been scheduled. Until Atkins is in place, experts say the SEC is unlikely to approve new crypto ETFs.

Despite the delay, analysts remain optimistic, with Bloomberg estimating high approval odds for Litecoin (90%), Dogecoin (75%), and Solana (70%). Industry insiders note that Ethereum and Bitcoin ETFs also faced multiple delays before approval. The SEC’s recent policy shift, including dropping cases against major exchanges, suggests a friendlier stance toward crypto regulation.

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Data of the Day

A Dragonfly report estimates that US crypto users missed out on $1.9 to $2.6 billion in airdrop revenue due to geoblocking and regulatory uncertainty. Researchers found that 22-24% of active crypto addresses belong to US residents, but many projects exclude them from token distributions. This restriction has also cost the US government up to $1.1 billion in lost tax revenue.

The report argues that airdropped tokens should not be classified as securities under the Howey Test. It suggests creating a safe harbor for non-fundraising airdrops, protecting both issuers and recipients. With ongoing discussions around crypto regulation, analysts say clarity on airdrop policies could boost US crypto adoption.

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More Breaking News

• EU regulators are reportedly investigating OKX for laundering funds from the $1.5B Bybit hack, but OKX denied the claims on social media.
• OKX Europe has acquired a MiFID II-licensed firm in Malta, bringing it closer to offering regulated derivatives across Europe, pending approval.
• Japan’s largest social media platform, Line, is integrating Sony’s Soneium blockchain to introduce mini-apps for its 200M users in the coming months.
• Video platform Rumble disclosed $17.1M in BTC holdings, part of a strategic hedge against inflation, with purchases beginning after Trump’s election.
• Bolivia’s state energy company YBFB will use crypto to pay for imports, addressing the nation’s US dollar shortage and declining foreign reserves.
• Franklin Templeton has become the largest asset manager to file for a Solana ETF, submitting a 19b-4 with the SEC just a day after its XRP ETF filing.
• MEXC is investing $36M into Ethena and its synthetic stablecoin USDe, aiming to boost stablecoin adoption and expand DeFi accessibility.
• Base network activity dropped 38% from its January peak but remains the top Ethereum Layer 2, outperforming Arbitrum and Optimism.

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