A recently launched artificial intelligence fund, established by the United Arab Emirates’ (UAE) government, has invested $2bn in cryptocurrency exchange Binance.

MGX was launched last year and is headed up by Tahnoun bin Zayed Al Nahyan, who is currently National Security Advisor to the UAE government.

The fund has since established a joint fund with Microsoft and BlackRock to invest in AI infrastructure.

The move to invest in cryptocurrency was thus slightly outside the fund’s remit but fits with the wider goals of the UAE government.

Authorities in the Gulf state have put in place regulations to encourage cryptocurrency firms to set up shop there and have broadly been positive about the industry.

Binance itself employs around 1,000 staff members in the country. The company’s CEO – Richard Teng – is based in the UAE and previously headed up one of the local regulators, which oversees the Abu Dhabi Global Market.

The terms of the $2bn were not revealed, although it seems that company founder Changpeng Zhao is still the majority shareholder.

MGX also made the investment via a stablecoin, although it did not say which one was used.