Changpeng Zhao, founder and former CEO of Binance, has expressed optimism about the potential of real-world asset tokenization but noted challenges such as liquidity traps, regulatory fragmentation, and flawed design mechanisms. This statement was made during an interview.
"In theory, you can “tokenize everything”—cities, buildings, even individuals could issue tokens—but in practice it's riddled with problems," said Zhao. "Liquidity drops, investors place fewer orders, and a vicious cycle follows. In today's tokenized-stock track, tokens and stocks aren't truly linked. Right now is a rare golden window."
The tokenization of real-world assets (RWAs) is gaining traction as a significant financial innovation. U.S. and Asian regulators are examining frameworks to integrate digital asset infrastructure with traditional markets. In the United States, initiatives like Nasdaq’s proposal to the Securities and Exchange Commission (SEC) and the SEC’s "Project Crypto" indicate a shift towards regulated tokenized securities. In Asia, crypto leaders including Zhao have emphasized the increasing adoption of stablecoins, real estate, and treasury instruments within blockchain ecosystems. These developments highlight a growing interest in improving market efficiency, transparency, and accessibility while ensuring investor protection.
The global market for real-world asset tokenization is projected to reach approximately USD 24 billion by 2025, marking a significant 308% growth over three years. Tokenized dividend-paying instruments such as treasury and money-market funds have surged by about 80% year-to-date, totaling USD 7.4 billion. Broader projections estimate that the overall asset tokenization market will be valued at around USD 2.08 trillion in 2025, with forecasts reaching USD 13.55 trillion by 2030 at a compound annual growth rate (CAGR) of 45.46%.
Zhao, commonly known as CZ, was born in Jiangsu, China in 1977 and later became a Canadian national. He co-founded Binance in July 2017 and served as its CEO until recently. Under his leadership, Binance became the world's largest cryptocurrency exchange by trading volume with over 150 million users globally. The company leveraged advanced matching engine technology and prioritized user experience to achieve this status.
Binance offers a wide range of digital asset services including spot and futures trading, staking, savings products, and a launchpad for new token projects. The company has also expanded into blockchain infrastructure by launching the BNB Smart Chain to support decentralized applications and facilitate asset tokenization.