CZ Highlights Web3, RWA, and Hong Kong’s Crypto Potential at HK Forum and Tokyo BNBDay

In late August 2025, Changpeng Zhao (CZ), the founder of Binance, appeared at two major events in Asia: the Hong Kong Crypto Finance Forum on August 27 and Tokyo BNBDay on August 28.

At these gatherings, he shared his perspectives on Web3, the tokenization of RWA, stablecoins, DeFi, and Hong Kong’s potential as a global crypto hub.

Additionally, in an interview with the South China Morning Post, CZ elaborated on regulatory challenges and opportunities for Hong Kong in the broader digital asset landscape.

Stablecoins as a Strategic Tool for Global Finance

At the Hong Kong Crypto Finance Forum on August 27, CZ opened his remarks by discussing stablecoins, emphasizing their critical role in the global financial system.

He noted that USDT’s circulating supply has surpassed $1 trillion, quietly facilitating at least $100 billion in cross-border settlements for the US dollar.

CZ pointed out that most US citizens do not use stablecoins themselves because they rely on the traditional banking system, while the majority of USDT activity occurs overseas, effectively strengthening the dollar’s global position.

CZ argued that Hong Kong is uniquely positioned to issue its own Hong Kong dollar stablecoin. Such an initiative could act as a bridge between global markets and mainland China, while also paving the way for cross-border use of the Chinese yuan.

He stressed that this is not merely a trend-following exercise, but a strategic necessity: countries that successfully put their national currency on-chain could gain significant influence in the future global financial system.

RWA Tokenization: Challenges in Liquidity, Regulation, and Product Design

CZ cautioned that while tokenization of RWA sounds promising, many have not fully thought through what can truly be tokenized.

For example, splitting a building into 10,000 tokens raises questions: what can an ordinary investor do with a single token? They cannot live in the property, liquidity is low, and the tokens may become “on-chain dead weight,” difficult to sell.

CZ emphasized that assets already circulating in electronic systems, such as stocks and bonds, are more suitable for on-chain migration, which can increase settlement efficiency and reduce costs.

He added that if institutions like the Hong Kong Stock Exchange embrace this trend, they could become a “blockchain version of the NYSE.” He also warned that if the US tokenizes its equities, global capital will flow there, and countries that lag behind could be marginalized. CZ likened it to China without Alibaba, where e-commerce could have been dominated entirely by Amazon.

He outlined three major challenges for RWA adoption:

1. Liquidity constraints

Financial products with strong market attributes are easier to tokenize because they are already tradable and digitally expressed. Non-financial assets face fundamental barriers.

For example, even in volatile real estate markets, tokenized property trading may be shallow due to limited price fluctuations, creating thin order books and low transaction volumes.

Large investors may find it almost impossible to execute sizable trades, leaving assets illiquid and vulnerable to short-term manipulation.

2. Regulatory complexity

Financial products often raise questions about their legal classification. In large or developed markets, multiple regulators may have overlapping responsibilities, requiring different licenses such as futures, spot, digital currency, or custody licenses.

Navigating these regulatory layers can limit business models and stall tokenization efforts.

3. Product mechanism limitations

Many US stock tokenization products, such as xStocks, do not maintain a true peg between the token and the underlying stock price, creating arbitrage gaps and undermining the product’s viability. Although various tokenization approaches are being tested, no fully feasible solution has yet emerged.

Despite these challenges, some RWA models have proven viable, particularly stablecoins backed by traditional financial instruments like US Treasury bonds.

US-issued stablecoins have successfully put the dollar on-chain, attracting global investment and reinforcing the US’s dominant position in the financial system. Other countries that fail to participate risk being sidelined.

CZ stressed that Hong Kong is currently in a rare strategic window. With supportive government policies and its longstanding role as an Asian financial hub, institutions and entrepreneurs have the opportunity to act decisively. Entering too early may pose operational risks, but delaying could mean missing the chance to lead.

RWA tokenization presents significant strategic opportunities but requires careful planning around liquidity, regulation, and product design.

Decentralized Exchanges and DAT Models

CZ predicted that the future will belong to decentralized exchanges (DEXs). He explained that DEXs offer advantages such as no mandatory KYC, more flexible user experience, high transparency, and lower long-term fees.

While Binance is a centralized exchange (CEX), CZ openly admitted that he does not expect it to remain the largest platform forever. He noted that current DEXs can be intimidating for new users, with complex addresses and smart contracts that most cannot navigate.

As a result, most users will start with CEXs, but once they learn to use wallets, they will gradually migrate to DEXs. CZ projected that in 5 to 10 years, DEXs will grow significantly, and in 10 to 20 years, they will surpass CEXs.

CZ also introduced Digital Asset Treasury (DAT) models, which allow traditional investors to gain exposure to digital assets without directly holding them. In publicly listed company models, DAT companies generally operate in the following ways:

1. Passive single-asset holding Companies like Strategy focus on passive holding of a single asset such as Bitcoin. This approach is relatively simple, with low management and decision-making costs, and allows adherence to a predefined strategy regardless of price fluctuations.

2. Active single-asset trading Although only holding one type of cryptocurrency, these companies actively trade based on market predictions. The outcome depends heavily on the management’s trading skills and subjective judgments, which may result in positive or negative performance.

3. Multi-asset portfolio management More complex DAT companies hold a diversified set of digital assets, such as Bitcoin, BNB, and Ethereum. Managers must make intricate decisions on allocation, timing of adjustments, and rebalancing strategies, requiring significant expertise.

4. Ecosystem investment and development The most complex model involves using a portion of funds, often 10%–20% or more, to invest in ecosystem development. For example, companies focused on Ethereum may invest to support the broader Ethereum ecosystem, while projects like BNB support other blockchain ecosystems. This approach demands high management capability.

CZ emphasized that DAT is not simply about holding cryptocurrencies; each model carries different management costs and requirements, providing a bridge for traditional companies and state-owned enterprises to participate indirectly in the crypto market.

For Hong Kong, promoting DEXs and DAT structures could deepen market liquidity, attract global participants, and reinforce its position as an innovative financial hub.

DEXs and DAT models represent key mechanisms for long-term decentralization and broader adoption of digital assets.

AI and Web3 Integration: From Concept to Inevitable Breakthrough

CZ highlighted the transformative potential of combining AI with Web3. He noted that most current AI+Web3 projects are primarily superficial, using front-end interfaces with ChatGPT APIs, but they represent only the beginning.

AI agents could interact autonomously, completing tasks such as writing, image generation, or translation while making tiny on-chain payments that traditional banking cannot handle. This micro-payment infrastructure could drive a massive increase in crypto transaction volume, potentially multiplying it by a thousand.

The main barrier is cost, as large AI models require enormous computing power with annual expenses in the billions. Web3 approaches, using crowdfunding and token incentives, could make AI open, decentralized, and accessible to the public.

CZ emphasized that AI should be treated as a public utility, allowing token holders to share in the benefits rather than keeping models entirely closed. Once realized, individuals could possess hundreds of AI agents performing automated tasks and generating economic value globally in a secure and transparent manner.

Although AI and Web3 integration is still at an early stage, the combination promises exponential growth in digital finance and a more democratized Web3 ecosystem.

One-sentence takeaway:

AI integrated with Web3 could revolutionize micro-payments and digital finance, establishing blockchain as the backbone of future AI-driven economies.

Hong Kong can rival US, UAE as a crypto hub, Binance founder CZ says

In his South China Morning Post interview, CZ acknowledged some current limitations in Hong Kong’s crypto market, such as retail investors being restricted to trading only four types of cryptocurrencies. However, he emphasized that Hong Kong possesses strong potential to become a leading crypto hub.

CZ suggested that regulators could grant exchanges greater autonomy to list a wider range of digital assets, taking inspiration from Japan’s more flexible approach.

He highlighted that a broader crypto offering could enhance Hong Kong’s competitiveness against markets like the US and UAE, attracting more projects, capital, and talent. CZ also pointed to the strategic opportunity of launching a Hong Kong-backed stablecoin, which could bridge the city with mainland China and facilitate wider cross-border use of digital currencies.

CZ stressed that balancing innovation with risk management is key, and with supportive regulation and timely initiatives, Hong Kong has the potential to rival other global crypto centers and strengthen its position in the digital asset ecosystem.

Conclusion

Throughout his appearances in Hong Kong and Tokyo, CZ consistently emphasized that opportunities in crypto remain vast, but participants should avoid blindly chasing trends. He highlighted several key points:

• Stablecoins operate at the national level and can influence global finance.

• RWA tokenization requires careful consideration of liquidity and regulatory compliance.

• DAT models serve as an entry point for traditional capital into digital assets.

• AI combined with Web3 is still in its early stages, but breakthroughs are inevitable.

CZ also pointed out Hong Kong’s favorable environment, noting that regulatory improvements are progressing rapidly, with the May stablecoin draft even preceding similar US initiatives.

What's more, CZ expressed a positive outlook on Bitcoin, noting that it is poised to become a global reserve asset. At BNBDAY, he encouraged builders to focus on what they are skilled at, passionate about, and able to create value with.