Zhao Changpeng added that the tokenization of real-world assets (RWA) is accelerating, bringing stablecoins, treasury bonds, real estate, and more into the crypto ecosystem.

Hong Kong—Binance founder Zhao Changpeng believes that the integration of the stock market and cryptocurrency is ushering in a new era for digital assets, which will expand access to institutional capital and broaden the global influence of cryptocurrencies.

But he warned that the industry still faces significant risks, especially as it enters its first major bull market cycle since these structures gained attention.

Zhao Changpeng stated at the Hong Kong Bitcoin Asia Summit that the move by publicly listed companies to hold Bitcoin and the performance of other cryptocurrencies on their balance sheets—emulating MicroStrategy's approach—marks a breakthrough moment.

He noted, "In the largest economies globally, 90%-95% of funds are managed by institutions. Before the advent of ETFs and financial companies, these institutions couldn't participate in cryptocurrency on a large scale."

By introducing cryptocurrencies to the stock markets in the U.S., Hong Kong, Japan, and other regions, Zhao Changpeng stated that the industry is effectively 'bringing the stock market into cryptocurrency, or bringing cryptocurrency into the stock market—it depends on how you look at it.'

Tokenization Momentum

In addition to Bitcoin treasury bonds and ETFs, Zhao Changpeng also pointed out that the surge in the tokenization of real-world assets (RWA) is another transformative trend. Stablecoins, treasury bonds, commodities, real estate, and even personal income streams are being tokenized, injecting 'hundreds of millions or even billions' into the crypto economy.

"We are developing in both directions," Zhao Changpeng said. "The stock market can now access cryptocurrency, and we are also bringing real-world assets into cryptocurrency. This is fantastic."

The Risks of Overexpansion

Despite CZ's enthusiasm, he warned that not every company pursuing this strategy will succeed.

Some companies may use cryptocurrency treasury bonds to 'boost stock prices,' while others lack the expertise to manage complex digital asset portfolios or invest in cryptocurrency startups. He stated that failure is inevitable, especially when the market shifts.

"We are currently in a bull market," Zhao said. "But eventually there will be a winter, there will be a bear market. Financial companies need to experience at least one cycle."

He noted that MicroStrategy (MSTR) experienced a painful first cycle but later benefited as its average Bitcoin cost basis declined.

Stability vs. Speculation

CZ believes that, in the long term, a significant inflow of capital from institutions and the stock market should reduce volatility.

"Basically, the larger the market cap, the smaller the volatility," he said. "It's just a principle of physics. The bigger the ship, the steadier it is."

But he acknowledged that the stock market is filled with speculative traders, which means that even if the overall asset class stabilizes over time, short-term volatility may still intensify.

Beyond Bitcoin

While Bitcoin remains at the core of most financial strategies, CZ pointed out that other tokens are also being adopted—including the recently established BNB Financial Company.

However, for smaller, newer tokens, the risks can be magnified. "The more mature the ecosystem, the lower the risk," Zhao Changpeng said. "Newer tokens may carry higher risks and higher returns, but mature tokens are the safer choice."

For Zhao Changpeng, the integration of cryptocurrency with traditional markets—through Bitcoin treasury bonds, ETFs, and tokenized risk-weighted assets (RWA)—is extremely positive. However, he still urges caution.

"Not all financial companies will double in value," he said. "Investors need to carefully assess them, understand the risks, and prepare for cycles."