Binance co-founder and former CEO Changpeng Zhao said he is in discussions with “probably a dozen governments” about tokenizing national assets, speaking during a panel at the World Economic Forum in Davos. The comments highlighted growing government interest in using blockchain rails for funding and public participation, even as regulators across regions continue to debate digital asset frameworks.
Zhao did not name the governments involved in the ongoing talks. Still, he framed the conversations as part of a broader effort to bring real-world assets on-chain and enable new capital formation models.
Why does that matter now? Governments face rising funding needs, while technology firms push for faster settlement and more efficient ownership systems.
What Tokenizing National Assets Could Mean
Tokenization converts real-world assets into blockchain-based tokens that can represent ownership and trade in fractional units. In the government context, that can include state-owned infrastructure, real estate holdings, or natural resources such as commodities.
Zhao described tokenization as a mechanism that could allow governments to unlock value earlier. He said the model could help public institutions “realize their financial gains first” and use those funds to develop key industries.
The structure resembles past government privatization efforts, where countries sold stakes in national telecom or energy firms to raise capital. However, tokenization offers the ability to divide ownership into much smaller units, opening participation to a wider pool of citizens or investors.
Fractional Ownership Could Expand Access
By allowing smaller allocations, tokenized assets can widen access beyond large institutions. Governments could offer citizens fractional exposure to strategic projects such as roads, ports, public utilities, or land development. For investors, the structure resembles digital ownership shares that can trade more easily than traditional private market holdings.
Tokenization also introduces the possibility of real-time ownership transfer, on-chain tracking, and faster settlement when compared with slower administrative processes used in many asset sale programs. The model aims to reduce friction in raising capital and distributing exposure.
Still, execution would rely on legal frameworks that define investor rights, custody standards, and enforcement mechanisms tied to state-backed assets.
CZ References Earlier Government Engagement
Zhao’s Davos remarks align with previous comments he has made about working with public-sector partners. In past discussions on social media, he has cited engagement with Pakistan, Malaysia, and Kyrgyzstan.
Kyrgyzstan has taken early steps in blockchain-based finance. The country launched a stablecoin pegged to its national currency, the som, and outlined plans for a U.S. dollar-pegged stablecoin backed by gold reserves valued at $300 million. These developments point to growing experimentation in emerging markets seeking alternative rails for liquidity and cross-border access.
Crypto Payments and the AI Agent Thesis
Alongside tokenization, Zhao addressed the state of crypto payments, describing convergence between traditional payment systems and cryptocurrency rails. He also introduced a longer-term view tied to automation.
Zhao said cryptos will become the native payment method for artificial intelligence agents. He suggested that as AI agents purchase goods and services on behalf of users, they will execute transactions using crypto-based payments.
That concept reflects a view that programmable money and blockchain settlement align closely with autonomous software decision-making. Whether AI-driven payments become mainstream depends on adoption, regulation, and infrastructure maturity, but Zhao framed it as a natural evolution.
Zhao’s comments in Davos suggest that tokenization discussions have moved beyond theory and into exploratory planning with governments. While details remain limited, the concept positions blockchain as a tool for capital formation tied to national assets.
If governments proceed, tokenized infrastructure and real estate may become one of the next major real-world asset experiments in global finance.