CZ: Tokenization and Public Treasuries Are a Big Win for Crypto Adoption, Yet Risk Factors Linger

CZ: Tokenization Accelerates Institutional Integration, but Market Risks Persist

HONG KONG — Binance founder Changpeng “CZ” Zhao said the growing overlap between equity markets and crypto marks a pivotal stage for digital assets, fueled by corporate treasuries, ETFs, and tokenization of real-world assets (RWAs).

Speaking at Bitcoin Asia, Zhao emphasized that public companies adding bitcoin to their balance sheets and the launch of ETFs have opened the door for institutional investors who previously had no scalable entry point. “In the world’s largest economy, 90%–95% of money is managed by institutions. Until ETFs and treasury companies, those players couldn’t meaningfully participate in crypto,” Zhao said.

Zhao also pointed to RWAs as a powerful new growth driver. Stablecoins, U.S. Treasury bills, real estate, commodities, and even income streams are being tokenized, channeling “hundreds of millions and billions” into the crypto ecosystem. “We’re going both ways. Equity markets now have access to crypto, and we’re bringing real-world assets into crypto. This is fantastic,” he said.

Caution on Risks
Despite his optimism, Zhao cautioned that not all firms adopting bitcoin or tokenized assets will succeed. Some may use treasuries as a stock-boosting tactic, while others lack the expertise to manage diversified crypto holdings. Failures are inevitable when the next downturn arrives, he said.

“Right now we’re in a bull market. But eventually, there will be a winter. Treasury companies will have to go through at least one cycle,” Zhao noted, pointing to MicroStrategy’s recovery only after enduring early losses.

Volatility Outlook
In the long run, Zhao argued that institutional inflows will help stabilize the market. “A larger market cap means less volatility. It’s just physics. A bigger ship is more stable,” he said. However, equity markets’ speculative nature could still keep short-term volatility elevated.

Beyond Bitcoin
While bitcoin remains the primary asset for treasury strategies, Zhao highlighted growing adoption of other tokens, including a new BNB-focused treasury firm. He cautioned, however, that newer assets carry greater risks than established ones.

For Zhao, the convergence of crypto and traditional markets — through ETFs, treasuries, and tokenized RWAs — is overwhelmingly positive, but discipline is key. “Not every treasury company is going to multiply in value,” he said. “Investors need to carefully evaluate, understand the risks, and prepare for cycles.”