Hong Kong – Binance – founder Changpen “CZ” Zhao believes that the convergence of stock markets and crypto introduces a new era for digital assets, one that expands access to institutional capital and expands Crypto’s global reach.
But he warns that the sector is still facing significant risks, especially as it enters its first major bull cycle when these structures were given traction.
CZ said in BTC Asia in Hong Kong, and said movements from public companies to keep Bitcoin And other cryptocurrencies on their balance – according to the example set by Microstratey – marks a breakthrough moment.
“In the world’s largest economy, 90% -95% of the money is managed by institutions,” he noted. “Until ETFs and Finance Ministry, these guys could not participate in crypto in a big way.”
By bringing crypto exposure to stock markets in the United States, Hong Kong, Japan and beyond, CZ said the industry effectively “brings stock markets to crypto or brings crypto to them – depending on how to look at it.”
Tokenization Push
In addition to Bitcoin Treasuries and ETFs, Zhao pointed to the rise in tokenization of assets in the real world (Rwas) as another transformative trend. Stableecoins, government bonds, raw materials, real estate and even personal income flows are tokenized, and draws “hundreds of millions and billions” into the crypto economy.
“We go both ways,” Cz said. “Equity Markets now has access to crypto and we bring assets in the real world of crypto. This is great.”
Risks of Overreach
Despite his enthusiasm, CZ warned that not any business pursuing this strategy will succeed.
Some companies may use crypto state boxes as a way to “pump up their share price”, while others lack the expertise to manage complex baskets with digital assets or investments in crypto startups. Errors are inevitable, he said, especially when the markets turn.
“Right now we’re in a bull market,” Zhao said. “But eventually there will be a winter that will be a bear market. Treasury businesses will have to undergo at least one cycle.”
Microstratey (Mstr)He noticed, endured a painful first cycle, but later benefited when the average bitcoin cost base fell.
Stability vs speculation
CZ claimed that greater influx of capital from institutional and stock markets in the long term should reduce volatility.
“Basically, the greater market capital, the less volatility it has,” he said. “It’s just physics. A bigger ship is more stable.”
But he acknowledged that the equity markets are full of speculative dealers, which means that short -term volatility could increase even when the total asset class is stabilized over time.
In addition to Bitcoin
While Bitcoin remains the center of most Finance Ministry of Finance, CZ noted that other tokens are also adopted – including a newly launched BNB Treasury Company.
However, for smaller and newer tokens, the risk is enlarged. “The more mature the ecosystem, the less risk,” Zhao said. “Newer may have a higher risk and higher return, but the established are safer efforts.” Re
For CZ, the merger of crypto with traditional markets – through Bitcoin state boxes, ETFs and tokenized RWAs – is overwhelmingly positive. Still he called for caution.
“Not all tax companies will multiply in value,” he said. “Investors have to evaluate them carefully, understand the risk and be prepared for bicycles.”
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