CZ Warns That While Tokenization and Public Treasuries Benefit Crypto, Challenges Persist

CZ: Tokenization Expands Crypto’s Reach but Risks Remain

HONG KONG — Binance founder Changpeng “CZ” Zhao said the growing convergence between traditional equity markets and crypto is unlocking new opportunities for institutional adoption but warned the sector still faces significant risks.

Speaking at Bitcoin Asia, Zhao pointed to corporate treasuries holding bitcoin, ETFs, and the tokenization of real-world assets (RWAs) such as stablecoins, treasury bills, commodities, and real estate as transformative shifts. “Equity markets now have access to crypto, and we’re bringing real-world assets into crypto,” he said. “This is fantastic.”

Zhao argued these developments mark a breakthrough moment, enabling the 90%-plus of global wealth managed by institutions to participate meaningfully in crypto. He noted tokenization alone is channeling “hundreds of millions and billions” into the ecosystem.

Still, Zhao cautioned that not every company will succeed. Some may lack the expertise to manage digital assets, while others could use treasuries merely to boost stock prices. Failures are likely when the market cycle turns. “Right now we’re in a bull market,” he said. “But eventually there will be a winter. Treasury companies must survive at least one cycle.”

Over time, Zhao believes larger inflows will help reduce volatility, though speculative equity traders may keep short-term swings elevated. Beyond bitcoin, other tokens — including BNB — are being adopted, though he stressed newer assets carry higher risks.

For Zhao, the fusion of crypto with equity markets and tokenized assets is overwhelmingly positive, but he urged investors to stay cautious: “Not every treasury company is going to multiply in value. Investors need to evaluate carefully and be prepared for cycles.”