Public treasures, tokenizations are incredible -Believing for crypto, but risks remain: CZ
Hong Kong -Binance founder Changpeng “CZ” Zhao believes that linking equity and crypto markets brings a new era for digital possessions, one that expands access to institutional capital and expansion of global crypto.
But he is cautious that the sector is still facing significant risks, especially if it enters the first main bull cycle because these structures are traction.
Speaking to Bitcoin Asia in Hong Kong, CZ says that public companies are moving to hold Bitcoin and other cryptocurrencies on their balance sheets – following the example set by microstrategy – mark a success at the moment.
“In the world’s largest economy, 90% -95% of money is governed by institutions,” he said. “Up to ETF and Treasury companies, those people can’t participate in crypto in a big way.”
By bringing crypto exposure to the equity markets in the US, Hong Kong, Japan and more, the CZ said the industry would effectively “bring the crypto equity markets, or bring crypto to them – depending on how you look at it.”
Tokenization Push
Beyond the wealth of Bitcoin and ETFs, Zhao pointed to the climb to the tokenization of real-world assets (Rwas) as another trend of transformation. Stablecoins, treasury bills, commodities, real estate and even personal revenue streams have been pokenized, fun “hundreds of millions and billions” in the crypto economy.
“We’re going the same way,” CZ said. “Equity markets have access to crypto, and we bring real-world assets to crypto. It’s amazing.”
Dangers of Overreach
Despite its enthusiasm, the CZ warned that not all companies pursuing this approach would succeed.
Some companies may use crypto treasury as a way to “pump up their stock price,” while others lack the expertise to manage complex baskets of digital assets or investment in crypto startups. Failures are inevitable, he said, especially when markets turn.
“Right now we’re in a bull market,” Zhao said. “But eventually there will be winter, there will be a bear market. Treasury companies will have to go through at least one cycle.”
Microstrategy (Mstr)He noted, enduring a painful first twist but benefited later as the average Bitcoin basis dropped.
Stability as compared to speculation -haaka
The CZ argues that in the long run, the greater flow of capital from institutions and equity markets should reduce volatility.
“Usually, the market cap is bigger, the less volatility,” he said. “It’s just physics. A larger ship is more stable.”
But he acknowledged that equity markets are full of imaginary merchants, which means that short-term volatility can increase even though the general type of property has stabilized over time.
More than bitcoin
While Bitcoin remains the center of most Treasury techniques, the CZ noted that other tokens were also adopted – including a recently launched BNB Treasury company.
For smaller and newer tokens, however, the risks are enlarged. “The older the ecosystem, the less danger,” Zhao said. “Those who are new may have higher risk and higher return, but the established are safer betting.” Re
For the CZ, the integration of crypto with a traditional market – through the wealth of Bitcoin, ETFs and tokenized RWAs – is extremely positive. However, he urged the care.
“Not all treasury companies will go to value,” he said. “Investors need to check them well, understand the dangers, and be prepared for the cycles.”
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