CZ’s Bold Take: Public Token Treasuries & Tokenization Are Crypto’s Game-Changer (But Mind the Risks)

Binance CEO Changpeng Zhao declares tokenization and public treasuries revolutionary for crypto—while issuing stark warnings about unchecked growth.

Riding the Tokenization Wave

CZ highlights how converting real-world assets into digital tokens unlocks liquidity, democratizes access, and slashes middlemen. Public companies holding crypto treasuries? That’s just savvy corporate strategy meeting decentralized finance.

The Risk Reality Check

Volatility bites. Regulatory gray zones loom. And yes—flash crashes, rug pulls, and that one CFO who thought 'APY' stood for 'Annual Party Yield' still haunt the ecosystem. Even bullish innovations demand sober risk management.

Future-Proof or Fool’s Gold?

Tokenization isn’t just hype—it’s restructuring global finance. But remember: every 'disruptive' blockchain solution still has to outmaneuver old-school bankers who’d rather buy a yacht than a yield farm. Stay sharp, stack wisely, and maybe keep some assets off-chain—just in case.

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.”