Changpeng “CZ” Zhao, the charismatic founder of Binance, delivered a compelling vision of the future at Bitcoin Asia in Hong Kong this week. He hailed the convergence of equity markets and cryptocurrency as a watershed moment for digital assets. Yet, he didn’t shy away from acknowledging the looming risks, especially as this hybrid market faces its first major bull cycle.
Bridging Two Financial Worlds
CZ’s insights underscore a growing trend where public companies are increasingly holding cryptocurrencies like bitcoin (BTC) on their balance sheets—following in the footsteps of MicroStrategy. This, he argues, represents a monumental shift, potentially unlocking institutional capital that was previously out of reach. “In the world’s largest economy, 90%-95% of the money is managed by institutions,” he noted. With moves like these, crypto is no longer just a fringe interest but is steadily integrating into mainstream finance.
But how does this integration manifest? According to CZ, it’s a two-way street. By bringing crypto exposure into equity markets across the globe—from the U.S. to Hong Kong and Japan—there’s a fusion happening. “We’re bringing the equity markets to crypto, or bringing crypto to them—depending how you look at it,” he quipped. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
The Tokenization Wave
Beyond the balance sheets, CZ highlighted another transformative trend: the surge in tokenization of real-world assets (RWAs). From stablecoins and treasury bills to real estate and even personal income streams, these assets are being digitized at an unprecedented pace. “We’re going both ways,” he emphasized, noting the massive inflow of capital this trend is driving into the crypto economy. It’s not just about holding digital gold anymore; it’s about bringing tangible assets into the blockchain era. As explored in our recent coverage of Bitcoin vs Gold: Why Choose? Gold Bars Are Now Tokenized on BTC Blockchain, the tokenization of traditional assets is gaining momentum.
A Double-Edged Sword
Yet, CZ’s enthusiasm came with a caveat. Not every company jumping on the crypto treasury bandwagon will find success. Some might simply be looking to inflate their stock price, while others might lack the expertise to manage the volatile world of digital assets. “Failures are inevitable,” he warned, especially when the market cycle shifts from bull to bear. He pointed to MicroStrategy’s experience as a cautionary tale—a company that weathered its inaugural cycle and emerged with a stronger footing as the average bitcoin cost basis fell.
Stability Amid Speculation
In CZ’s view, the influx of institutional capital could eventually dampen the notorious volatility of the crypto market. “Basically, the larger the market cap, the less volatility it has,” he explained, likening the market to a ship that becomes more stable as it grows. Yet, he was quick to acknowledge the speculative nature of equity markets, suggesting that while long-term stability is plausible, short-term swings could still occur.
Beyond Bitcoin
Though bitcoin remains the crown jewel of most treasury strategies, CZ highlighted the growing adoption of other tokens, like the newly launched BNB treasury company. However, he cautioned that smaller and newer tokens come with amplified risks. “The more mature the ecosystem, the less risk,” he advised, suggesting that while these newer tokens might offer higher rewards, they also present significant dangers.
Looking forward, CZ is optimistic about the fusion of crypto with traditional markets through mechanisms like bitcoin treasuries, ETFs, and tokenized RWAs. However, he urged investors to tread carefully. “Not every treasury company is going to multiply in value,” he reminded, emphasizing the importance of diligent evaluation and a readiness for inevitable market cycles.
As the crypto world stands on the precipice of this new era, the question remains: Can these promising trends withstand the test of time and volatility, or will they falter under the weight of their own ambition? Only time will tell, but one thing is certain—crypto’s journey alongside traditional finance is far from over.
Source
This article is based on: Public Token Treasuries and Tokenization are Fantastic for Crypto, But Risks Remain, Binance’s CZ Says
Further Reading
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- Bitcoin, Ether ETF Flows Hint at Incoming Altcoin Bull Run: Crypto Daybook Americas
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
