Binance Founder CZ Confirms Discussions With Governments To Tokenize National On-Chain Assets

Binance founder Changpeng “CZ” Zhao said many governments are currently engaged in deliberations on tokenizing their assets on blockchain networks.

Zhao said during a panel discussion at the World Economic Forum in Davos that he was negotiating with more than a dozen governments to tokenize their public assets, which would be the next big step in the adoption of cryptocurrencies after trading platforms and stablecoins.

Zhao positioned tokenization as the next step in cryptocurrency adoption after what he described as the first two industries already being tested globally: trading platforms and stablecoins.

Token Shifts to Sovereigns as Governments Focus on Liquidity and Control

CZ noted that most other cryptocurrency sectors are still relatively small or experimental.

However, governments now view tokenization as a way to directly benefit from financial gains from their own assets, rather than outsourcing value creation to private intermediaries.

He explained that governments want to convert large asset bases into digital tokens, make quick gains by improving liquidity and market access, and reinvest these revenues into local market and infrastructure development.

This debate places state-led asset tokenization in a different category from previous private sector efforts to tokenize real assets.

National assets such as government bonds, commodities such as oil or gold, and public real estate can be represented as blockchain-based tokens that enable partial ownership, seamless trading, faster settlement, and automated payments via smart contracts.

For governments, this structure also provides transparency and direct control over issuance and distribution, while retaining financial returns within the public sector.

Zhao’s comments come at a time when many countries and financial institutions are already moving in this direction.

Pakistan’s finance ministry this month announced plans to tokenize up to $2 billion in domestic sovereign debt as part of a broader effort to modernize public debt markets and attract retail participation.

In Europe, the EU’s Distributed Ledger Technology Pilot Program already provides a regulatory framework for the trading and settlement of tokenized securities, and the UK has already appointed a dedicated administrator to support the country’s transition to a blockchain-based financial infrastructure.

Tokenization is gaining momentum with the New York Stock Exchange and DTCC moving in this direction.

Traditional market infrastructure is also gaining momentum, with the New York Stock Exchange confirming on January 19 that it is building a platform to facilitate trading of tokenized stocks and ETFs with 24/7 trading and settlement on blockchain, pending regulatory approval.

Zhao publicly welcomed the move, calling it a bullish signal for cryptocurrencies and trading platforms.

Regulatory signals in the United States also saw a shift when the Securities and Exchange Commission issued a rare no-action letter to the depository and settlement company in December, allowing it to continue a regulated tokenization program covering U.S. Treasuries, ETFs and Russell 1000 stocks.

The service is expected to launch in late 2026 and will run on certified blockchains, with DTCC emphasizing that tokenized assets will carry the same legal rights and investor protections as traditional securities.

Zhao also linked the token’s rise to other structural trends, pointing out that payments are another area where cryptocurrencies are already operating at scale, particularly through stablecoins.

He also noted that the next step will be “invisible payments,” where users transact in fiat currency while cryptocurrency networks operate in the background.

Market data indicates that tokenization is already gaining momentum, with tokenized gold products adding approximately $2.8 billion in net value in 2025, with total market capitalization increasing by 177% year-over-year and trading volumes reaching levels similar to those of the world’s leading gold investment vehicles.

Analysts see this as evidence that blockchain markets are beginning to absorb liquidity that traditionally flows through traditional financial products.

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