The boss of Binance, Changpeng « CZ » Zhaorecently highlighted the growing adoption of Bitcoin and cryptocurrencies by companies, especially through Bitcoin treasury and the tokenization of active world (RWA). Although this trend is perceived as a major advance for the sector, CZ warns against potential risks, especially in a bull market.
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The boss of Binance, Changpeng Zhao, highlighted the growing adoption of cryptocurrencies by companies, with a particular interest in Bitcoin cash and the tokenization of active world.
Although this promising trend opens up new opportunities for institutional investors, CZ has warned potential risks, including the possibility of failures for certain companies in a lower market.
Bitcoin and tokenization: a new era for cryptos?
During the conference BTC Asia in Hong KongCZ underlined how Companies like Strategy opened the way by integrating Bitcoin and other cryptocurrencies in their balance sheets. This approach allows Institutional investors to participate more actively in the Crypto market, a sector that was previously difficult to access for them.
«In the largest economy in the world, 90 to 95 % of money is managed by institutions,» said CZ. “Until ETF and cash companies, these guys could not significantly participate in cryptography. »»
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In addition to Bitcoin and ETF treasures, CZ has also mentioned the tokenization of active active world (RWA) as a transformative trend. Assets such as stablecoinsTreasury bills, raw materials and even personal income flows are tokenized, injecting «hundreds of millions and billions» in the crypto economy.
The underlying risks according to CZ
Despite this optimism, CZ warns that not all companies will succeed in this strategy. Some could use cryptocurrencies to «inflate the price of their actions», while others lack the expertise necessary to manage complex digital asset portfolios. Failures are inevitable, especially when the market runs.
“For the moment, we are in a bull market (…). But there will be a winter, a lower market. Cash companies will have to cross at least one cycle. »»
CZ cited Strategy As an example of a business which survived a difficult cycle but which finally benefited from its Bitcoin strategy.
Bitcoin, a pillar
While Bitcoin remains the central pillar of most cash strategies and that CZ affirms that it «will become the global reserve currency» other tokens also gain popularity. However, for smaller and more recent tokens, the risks are amplified according to the founder of Binance.
“The more mature the ecosystem, the less risks (…). The most recent can have higher risks and yields, but the most established are safer bets. »»
For CZ, the merger of the crypto with traditional markets via Bitcoin cash, ETF and the tokenization of RWA is generally positive. However, he urges caution. «All investors must assess cash companies carefully, understand risks and be ready for cycles,» he concluded.