Hong Kong – The founder of Binance, Changpeng “CZ” Zhao, believes that the convergence of stock markets and crypto inaugurates a new era for digital assets, which widens access to institutional capital and widens the global scope of crypto.
But it warns that the sector still faces significant risks, especially since it enters its first cycle of major bull, because these structures have gained ground.
Speaking to BTC Asia in Hong Kong, CZ said that public enterprises have moves to hold Bitcoin And other cryptocurrencies on their balance sheets – depending on the example given by microstrategy – mark a moment of breakthrough.
“In the largest economy in the world, 90% to 95% of money is managed by institutions,” he noted. “Until FNB and cash companies, these guys could not participate in the crypto largely.”
By providing cryptographic exposure to stock markets in the United States, Hong Kong, Japan and beyond, CZ said that industry “effectively brought the crypto stock markets or their crypto contribution-depending on how you look at it”.
Push tokenization
Beyond Bitcoin and ETF vouchers, Zhao highlighted the rise in the tokenization of active world (Rwas) Like another transformative trend. Stablecoins, cash bills, basic products, real estate and even personal income sources are in tokenized, channeling “hundreds of millions and billions” in the cryptographic economy.
“We are going in both directions,” said CZ. “The stock markets now have access to the crypto, and we bring real assets in the crypto. It’s fantastic. “
Risks of exceeding
Despite his enthusiasm, CZ warned that all the companies that pursue this strategy will not succeed.
Some companies may use cryptographic treasure bills as a means of “setting up their stock market course”, while others do not have expertise to manage complex asset baskets or investments in cryptographic startups. The failures are inevitable, he said, especially when the markets run.
“Right now, we are on a bull market,” said Zhao. “But ultimately, there will be a winter, there will be a lower market. Cash companies will have to go through at least one cycle. ”
Microstrategy (MSTR)He noted, endured a painful first cycle, but took advantage later because its average Bitcoin cost base fell.
Stability vs speculation
CZ has argued that long -term entries in capital markets and actions should reduce volatility.
“Basically, the larger the market capitalization, the less volatility,,” he said. “It’s just physics. A larger ship is more stable. ”
But he recognized that the stock markets are full of speculative traders, which means that short -term volatility could increase even if the overall asset class is stabilized over time.
Beyond Bitcoin
While Bitcoin remains the centerpiece of most treasury strategies, CZ noted that other tokens are also adopted – including a recently launched BNB cash company.
For smaller and more recent tokens, however, the risks are amplified. “The more mature the ecosystem, the less risks,” said Zhao. “The most recent can have a higher risk and higher yields, but those established are safer bets.” D
For CZ, the merger of crypto with traditional markets – through Bitcoin vouchers, ETF and token Rwa – is extremely positive. However, he urged caution.
“Not all cash companies will multiply,” he said. “Investors must assess them carefully, understand the risks and prepare for cycles.”
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