Hong Kong – The founder of Binance, Changpeng “CZ” Zhao, believes that the convergence of capital markets and cryptography begins in a new era for digital assets, one that expands access to institutional capital and expands the global scope of Crypto.
But he warns that the sector still faces significant risks, especially because it enters its first important bull cycle since these structures gained traction.
Speaking in BTC Asia in Hong Kong, CZ said that the movements of public companies have Bitcoin and other cryptocurrencies in their balances, following the example established by Microstrategy, mark an innovative moment.
“In the world’s largest economy, 90% -95% of money is managed by institutions,” he said. “Until the ETFs and treasure companies, those guys could not participate in cryptography largely.”
By bringing cryptographic exposure to variable rental markets in the United States, Hong Kong, Japan and beyond, CZ said the industry is effectively “carrying capital markets to cryptography, or bringing crypto to them, depending on how it sees it.”
Tokenization thrust
Beyond the treasures and ETF of Bitcoin, Zhao pointed out the increase in the tokenization of real world assets (RWAS) as another transformative trend. The stable, the Treasury invoices, the basic products, the real estate and even the personal income flows are touching, channeling “hundreds of millions and billions” in the cryptographic economy.
“We are going both ways,” Cz said. “Variable rental markets now have access to cryptography, and we are bringing real world assets to cryptography. This is fantastic.”
Extinguction risks
Despite his enthusiasm, CZ warned that not all companies that seek this strategy will succeed.
Some companies can use Crypto’s treasure as a way to “pump the price of their shares”, while others lack the experience to manage complex digital assets or investments in new cryptography companies. Fallas are inevitable, he said, especially when markets change.
“We are currently in a bullish market,” said Zhao. “But eventually there will be a winter, there will be a bearish market. Treasury companies will have to go through at least one cycle.”
Microstrategy (Mstr)He pointed out, suffered a painful first cycle, but benefited later as its average Bitcoin costs decreased.
Stability versus speculation
CZ argued that in the long run, largest capital entries of institutional and capital markets should reduce volatility.
“Basically, the greater the market capitalization, the less volatility it has,” he said. “It’s just physical. A larger ship is more stable.”
But he acknowledged that capital markets are full of speculative merchants, which means that short -term volatility could increase even as the general asset class is stabilized over time.
Beyond Bitcoin
While Bitcoin remains the centerpiece of most treasure strategies, CZ said that other tokens are also being adopted, including a recently launched BNB treasury company.
However, for smaller and newer tokens, the risks are magnified. “The more mature the ecosystem is, the less risk,” Zhao said. “The newest may have a higher risk and greater yields, but those established are safer bets.”
For CZ, the fusion of cryptography with traditional markets, through Bitcoin Treasures, ETF and RWA tokenized, is overwhelmingly positive. Even so, he urged caution.
“Not all treasure companies will multiply in value,” he said. “Investors must carefully evaluate them, understand the risks and be prepared for cycles.”
Read more: Bitcoin remains under pressure since gold is silent silently to a new high record
