HONG KONG — Binance founder Changpeng “CZ” Zhao believes the convergence of equity markets and crypto is ushering in a new era for digital assets, one that expands access to institutional capital and broadens crypto’s global reach.
But he cautions that the sector still faces significant risks, especially as it enters its first major bull cycle since these structures gained traction.
Speaking at BTC Asia in Hong Kong, CZ said moves by public companies to hold bitcoin BTC$111,379.45 and other cryptocurrencies on their balance sheets — following the example set by MicroStrategy — mark a breakthrough moment.
“In the world’s largest economy, 90%-95% of the money is managed by institutions,” he noted. “Until ETFs and treasury companies, those guys couldn’t participate in crypto in a large way.”
By bringing crypto exposure to equity markets in the U.S., Hong Kong, Japan and beyond, CZ said the industry is effectively “bringing the equity markets to crypto, or bringing crypto to them — depending how you look at it.”
Tokenization Push
Beyond bitcoin treasuries and ETFs, Zhao pointed to the surge in tokenization of real-world assets (RWAs) as another transformative trend. Stablecoins, treasury bills, commodities, real estate and even personal income streams are being tokenized, funneling “hundreds of millions and billions” into the crypto economy.
“We’re going both ways,” CZ said. “Equity markets now have access to crypto, and we’re bringing real-world assets into crypto. This is fantastic.”
Risks of Overreach
Despite his enthusiasm, CZ warned that not every company pursuing this strategy will succeed.
Some firms may use crypto treasuries as a way to “pump up their stock price,” while others lack the expertise to manage complex baskets of digital assets or investments 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 a winter, there will be a bear market. Treasury companies will have to go through at least one cycle.”
MicroStrategy (MSTR), he noted, endured a painful first cycle but benefited later as its average bitcoin cost basis dropped.
Stability vs Speculation
CZ argued that in the long run, larger inflows of capital from institutional and equity markets should reduce volatility.
“Basically, the larger the market cap, the less volatility it has,” he said. “It’s just physics. A bigger ship is more stable.”
But he acknowledged that equity markets are full of speculative traders, meaning short-term volatility could increase even as the overall asset class stabilizes over time.
Beyond bitcoin
While bitcoin remains the centerpiece of most treasury strategies, CZ noted that other tokens are being adopted too — including a recently launched BNB treasury company.
For smaller and newer tokens, however, the risks are magnified. “The more mature the ecosystem, the less risk,” Zhao said. “Newer ones may have higher risk and higher returns, but the established ones are safer bets.”re
For CZ, the fusion of crypto with traditional markets — through bitcoin treasuries, ETFs and tokenized RWAs — is overwhelmingly positive. Still, he urged caution.
“Not every treasury company is going to multiply in value,” he said. “Investors need to evaluate them carefully, understand the risks, and be prepared for cycles.”
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