CZ: Tokenization Unlocks Institutional Capital but Market Cycles Pose Challenges
HONG KONG — Binance founder Changpeng “CZ” Zhao said the merging of equity markets and crypto is ushering in a new growth phase for digital assets, with tokenization and corporate treasuries expanding the sector’s institutional reach.
Speaking at the Bitcoin Asia conference, Zhao highlighted how public companies holding bitcoin and the rise of ETFs have created new entry points for traditional capital. “In the world’s largest economy, 90–95% of the money is managed by institutions. Until ETFs and treasury companies, those guys couldn’t participate in crypto in a large way,” he said.
Zhao pointed to the acceleration of real-world asset (RWA) tokenization — covering stablecoins, T-bills, real estate, commodities, and even personal income streams — as a major driver of inflows. “Equity markets now have access to crypto, and we’re bringing real-world assets into crypto. This is fantastic,” he said.
Still, Zhao warned the space is not without risks. Some firms may treat bitcoin treasuries as a way to inflate share prices, while others may struggle to manage digital assets effectively. Failures, he cautioned, will be inevitable when the bull cycle fades. “Treasury companies will have to go through at least one winter,” Zhao said, noting that MicroStrategy only benefited after surviving its first downturn.
In the long run, Zhao argued, growing capital inflows should reduce volatility. “A bigger market cap means less volatility. A bigger ship is more stable,” he said, while acknowledging that equity markets’ speculative nature could keep short-term swings elevated.
While bitcoin remains the anchor for most treasury strategies, Zhao noted some diversification is underway, with even BNB-focused treasuries emerging. However, he cautioned that newer tokens carry higher risks.
Zhao concluded that the convergence of crypto with traditional markets is a net positive but emphasized prudence: “Not every treasury company is going to multiply in value. Investors need to evaluate carefully, understand the risks, and prepare for cycles.”
