Changpeng Zhao, better known as CZ, is making the case for tokenizing stocks and creating government-backed stablecoins — a move he says could open global markets to millions of new investors. The former Binance CEO laid out his vision in a series of public remarks, arguing that putting equities and national currencies on blockchain rails would lower the barriers that keep ordinary people out of traditional finance. But he also acknowledged that the path forward is anything but smooth, with regulators and central banks still wrestling with the risks.
What tokenizing stocks means
Tokenization turns a real-world asset — like a share of Apple or Tesla — into a digital token that can be traded on a blockchain. In theory, that allows someone in a country with no direct access to U.S. stock exchanges to buy a fraction of a share for a few dollars. CZ argues that this could democratize investment on a scale that not even the rise of online brokerages achieved. Instead of needing a local bank account, a brokerage, and a pile of paperwork, a user would only need a crypto wallet.
The idea isn't new. Several projects have tried it, but none have broken into the mainstream. The difference now, according to CZ, is that the technology is mature enough and the demand for alternative investment channels is higher than ever. He points to the growing number of people in emerging economies who want exposure to U.S. markets but face capital controls or high fees.
The case for national stablecoins
Alongside tokenized stocks, CZ advocates for stablecoins issued directly by governments — digital versions of national currencies that live on a blockchain. These would differ from the private stablecoins like USDC or Tether in that they'd carry the full faith and backing of a central bank. For cross-border payments and remittances, a national stablecoin could cut costs and settlement times from days to seconds.
CZ sees a dual benefit: tokenized stocks need a stable medium of exchange to trade against, and a government-issued stablecoin would be the most trusted option. He envisions a future where an investor in Nigeria could buy tokenized U.S. stocks using a digital naira, then sell them and settle back into the local currency instantly. That kind of liquidity, he says, would unlock trillions of dollars in dormant capital.
Regulatory and stability hurdles
Both ideas face serious headwinds. Regulators in the U.S., Europe, and Asia have been slow to approve tokenized securities, often because they don't fit neatly into existing securities laws. Questions about custody, investor protection, and market manipulation remain unresolved. On the stablecoin side, central banks worry that a widely used national stablecoin could destabilize the banking system if people pull deposits out of commercial banks to hold the digital version directly with the central bank.
There's also the problem of economic stability in countries that might adopt such systems. A national stablecoin pegged to a volatile local currency could create arbitrage opportunities and capital flight risks. CZ didn't offer detailed solutions to these problems, but he stressed that the conversation needs to start now rather than wait for a crisis to force change.
What comes next
No major government has yet committed to issuing a national stablecoin for broad public use. A few central banks are running pilot programs, but none have launched at scale. Meanwhile, tokenized stock offerings remain limited to private placements and a handful of regulated exchanges. CZ's call adds to a growing chorus of industry voices pushing policymakers to act. Whether they listen — and how quickly — will determine whether his vision stays a blueprint or becomes reality.
