During a packed session at Bitcoin Asia in Hong Kong, Binance founder Changpeng Zhao, known as “CZ”, told attendees that the convergence of equity markets and cryptocurrencies may unlock trillions in capital.
Bitcoin Asia: Binance’s CZ Lauds Bitcoin Treasuries but Warns Investors of Cyclical Risks
29 August 2025 - 13:45 CEST
He hailed the decision by Michael Saylor’s Strategy and other companies to hold Bitcoin and other crypto on their balance sheets, arguing that these digital asset treasuries (DATs), along with exchange‑traded funds (ETFs), give Wall Street a way to get exposure to crypto.
“In the world’s largest economy, 90–95 % of the money is managed by institutions,” he said; until corporate treasuries and ETFs emerged, “those guys couldn’t participate in crypto in a large way.” Zhao framed the new instruments as a bridge between markets: bringing equity liquidity to crypto and vice versa.
Tokenization and risk management
Zhao then pivoted to the accelerating trend of tokenizing real‑world assets. Stablecoins, treasury bills, commodities, real estate and even personal income streams are all being turned into digital tokens, he noted.
"We’re going both ways,” he said – traditional markets can now access digital assets while blockchain technology is bringing real‑world assets closer to digital ones.
CZ warned that not every company will succeed. Some firms may use bitcoin treasuries as a gimmick to boost their share price, while others lack the expertise to manage baskets of digital assets. When the next bear market hits, he cautioned, treasuries will be stress‑tested.
He argued that over time, larger institutional inflows should dampen volatility – “a bigger ship is more stable” – while acknowledging that equity markets may attract short‑term speculators. Established tokens, he added, carry less risk than newer coins, which tend to bring both higher returns and also more volatility.
Cold water
From the floor at Bitcoin Asia, the mood was optimistic yet cautious. Zhao’s thesis — that tokenized treasuries and ETFs will usher digital assets into mainstream finance likely resonated with many attendees.
However, his warning about inevitable failures gave a cautionary tone, serving as a reality check of the risks that remain within the industry. If fledgling treasury firms can survive a bear cycle, tokenized assets could become a core component of corporate finance.
If they falter, regulators may tighten oversight, and investors could retreat to more mature tokens. “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.”
