CZ: Tokenization and Equity Market Convergence Are Transforming Crypto, but Risks Persist

HONG KONG — Binance founder Changpeng “CZ” Zhao said the growing overlap between equity markets and crypto is ushering in a pivotal moment for digital assets, one that is expanding institutional access and accelerating mainstream adoption.

Speaking at Bitcoin Asia in Hong Kong, Zhao pointed to the rise of bitcoin treasuries, exchange-traded funds (ETFs), and tokenized real-world assets (RWAs) as key drivers of this shift. “In the world’s largest economy, 90% to 95% of the money is managed by institutions,” Zhao said. “Until ETFs and treasury companies, those players couldn’t participate in crypto at scale.”

By allowing corporations to hold bitcoin and other digital assets on their balance sheets, and by introducing tokenized instruments such as stablecoins, treasury bills, and real estate into the crypto ecosystem, Zhao argued that the industry is effectively bridging the gap between traditional finance and blockchain-based markets. “We’re going both ways,” he said. “Equity markets now have access to crypto, and we’re bringing real-world assets into crypto. This is fantastic.”

Tokenization Momentum

Zhao highlighted tokenization as one of the most transformative developments in the industry, noting that RWAs are increasingly being represented on-chain — from government bonds to commodities and even income streams. He said the trend is funneling “hundreds of millions and billions” into crypto markets and will likely expand further as institutions search for efficiency and yield.

Risks and Cycles

Despite the optimism, Zhao warned that not every company pursuing bitcoin treasuries or tokenization strategies will succeed. Some firms may use digital assets as a short-term stock-price booster, while others lack the expertise to manage complex portfolios. He emphasized that failures are inevitable once the market enters a downturn.

“Right now, we’re in a bull market,” Zhao said. “But eventually there will be a winter. Treasury companies will need to survive at least one cycle.” He pointed to MicroStrategy (MSTR) as an example of a firm that endured painful drawdowns in earlier cycles but later benefited as its average bitcoin cost fell.

Stability vs. Speculation

Over the long term, Zhao believes that larger inflows from institutions and equity markets will reduce volatility. “Basically, the larger the market cap, the less volatility it has. A bigger ship is more stable,” he said. Still, he acknowledged that speculative equity traders could amplify short-term price swings.

Beyond Bitcoin

While bitcoin remains the dominant asset for corporate treasuries, Zhao noted that other cryptocurrencies are starting to see adoption, including BNB. However, he cautioned that smaller, less mature tokens carry higher risks despite the potential for higher returns.

For Zhao, the fusion of crypto with traditional markets through treasuries, ETFs, and tokenized assets is a net positive — but one that requires investors to remain cautious.

“Not every treasury company will multiply in value,” Zhao concluded. “Investors need to understand the risks, evaluate carefully, and be prepared for cycles.”