Binance founder CZ urges governments to tokenize stock markets and launch sovereign stablecoins

Binance founder Changpeng Zhao (CZ) has called on governments to tokenize their stock markets and issue sovereign stablecoins, arguing that blockchain technology can expand access to capital markets and increase the global use of national currencies.

CZ pushes for governments to embrace tokenization and stablecoins

In an X post on Wednesday, CZ said countries should "tokenize their stocks, allowing worldwide buyers." He also urged governments to issue their own stablecoins, citing it as a way to “expand their currency's usage on the blockchain."

The comments come as tokenization gains momentum across both crypto and traditional finance. Major financial institutions, including Citigroup and Coinbase, have recently unveiled plans to expand tokenized equity offerings, while regulators continue to explore frameworks for blockchain-based securities.

The sector expanded 256% to nearly $30 billion by April, with several industry estimates projecting its market size could exceed $400 billion by the end of 2026.

CZ's proposal would allow investors worldwide to access tokenized versions of domestic equities, potentially broadening participation in capital markets with lower settlement times.

The Binance founder also revealed that he has been meeting with government officials across Asia to promote digital asset adoption.

"Was busy meeting a few country leaders and regulators in Asia to advance crypto. Making good progress," CZ wrote in a separate X post.

The remarks come amid CZ's growing advisory role for governments on digital asset policy. He has previously said he "officially and unofficially advises a few governments" on crypto regulation and blockchain adoption.

CZ currently serves as a strategic adviser to Pakistan's Crypto Council, where he provides guidance on digital asset regulation and industry development. He also advises Kyrgyzstan President Sadyr Japarov on blockchain and digital asset policy.

The comments come as Binance continues to navigate regulatory challenges in Europe. The exchange's application for a Markets in Crypto-Assets (MiCA) license in Greece is reportedly set to be rejected by the country's capital markets regulator, according to Reuters.

Under the European Union's MiCA framework, crypto firms must secure authorization by the end of June to continue operating seamlessly across the bloc.

A rejection could require Binance to suspend services for EU users from July. The exchange said it has worked extensively with regulators and expects to provide an update before the deadline.