Binance Co-Founder CZ Engages Governments on Tokenization, But the Real Future is Decentralized Finance
At the World Economic Forum this week, Changpeng Zhao — co-founder of Binance — revealed that he’s in discussions with around a dozen national governments about tokenizing public assets and state-owned resources on blockchains.
While traditional power structures are exploring how to put sovereign bonds, commodity reserves, and other government assets onto digital ledgers, this moment underscores the growing momentum behind real-world asset (RWA) tokenization — a core Web3 innovation that can shift value into permissionless systems where individuals retain control of assets directly on-chain. (Blockonomi)
Why This Matters for Decentralization
Tokenized assets break down barriers — When real-world instruments (bonds, bills, property rights) are issued as tokens on open networks, ownership can become transparent, programmable, and borderless, potentially reducing reliance on incumbent intermediaries.
Government trials signal transition, not final form — Even though some discussions involve state actors, the broader push for tokenization is rooted in decentralized finance (DeFi) principles that empower individuals with custody and verifiable rights, rather than centralized custodians.
Global interest reflects demand for open markets — Deals like Pakistan’s MoU to explore tokenizing ~$2 billion in sovereign assets show governments are ready to modernize financial infrastructure — but the true promise lies in permissionless network participation for all users.
Looking Ahead
The fact that public treasuries and national regulators are entertaining tokenization underscores its inevitability. But for advocates of decentralization, this should be a cue to ensure that standards, protocols, and governance models preserve on-chain sovereignty, user self-custody, and open access, rather than entrenching new forms of centralized control.
In short: bridging public assets to the blockchain isn’t just about digitizing old finance — it’s an opportunity to reorient financial infrastructure around decentralized, transparent systems that return power to users and open global markets to broader participation.