Changpeng Zhao Advises Multiple Governments on Tokenizing State Assets for Public Funding
- Governments now explore asset tokenization to raise capital faster and fund infrastructure through regulated blockchain frameworks.
- Tokenized public assets expand investor access and improve transparency while offering new funding paths for state projects.
- Emerging markets test onchain models as policymakers balance innovation needs with legal clarity and financial stability.
Former Binance chief executive, Changpeng Zhao, told heads of the World Economic Forum in Davos that he is consulting various governments on how to tokenize assets. He indicated the consultations entail about 12 governments.
These talks focus on placing state-owned assets on blockchain networks. Governments see tokenization as a funding option for long-term development needs. The discussions signal rising public-sector interest in real-world asset tokenization.
Governments Explore Onchain Financing Models
Governments now examine tokenization to unlock value from public assets. This approach allows earlier access to capital. Authorities can then fund infrastructure and industrial projects. Moreover, tokenization can widen participation beyond major institutions. Smaller allocations allow broader investor access.
Additionally, blockchain settlement improves transaction speed. Ownership transfers occur faster and with more transparency. Governments can also track asset flows in real time. These features reduce paperwork and operational delays. However, adoption still depends on strong legal frameworks.
Clear rules must define investor rights and custody standards. Enforcement clarity also remains essential. Therefore, governments often begin with limited pilot programs. Stablecoins and exchanges already serve as testing grounds. Tokenization now joins this group of proven blockchain use cases.
Public Assets and Market Access
Tokenization resembles earlier privatization strategies used by governments. States previously sold stakes in public companies to raise capital. Tokenization changes this approach through deeper fractional ownership. This structure allows retail participation at smaller amounts. As a result, access expands beyond institutional investors.
Furthermore, tokenized assets often trade more easily than private holdings. Improved liquidity can attract global capital. Governments can also diversify funding sources. Investors gain exposure to long-term national projects. These projects may include transport, utilities, and land development.
Transparency also improves under onchain systems. Blockchain records simplify reporting and auditing. This clarity may improve public trust. Still, market maturity differs by region. Consequently, adoption speeds will vary across countries.
Regional Engagements and Policy Signals
Zhao’s advisory work spans multiple regions. Pakistan’s Crypto Council appointed him as an adviser in March 2025. Malaysian officials also discussed regulatory planning with him earlier this year. In Kyrgyzstan, cooperation includes work on a som-pegged stablecoin. Authorities there also explore a dollar-backed stablecoin tied to gold reserves.
These efforts highlight experimentation in emerging markets. Governments seek liquidity and cross-border access. However, regulatory approaches differ widely. Policymakers balance innovation with financial stability concerns. Therefore, pilots usually start with narrow scopes.
Zhao also discussed limits around crypto payments. Traditional payment systems still dominate daily commerce. Nonetheless, convergence continues between digital assets and legacy rails. He also linked crypto development with artificial intelligence automation. Programmable money may support machine-driven transactions in the future.
Zhao’s public role continues despite his exit from Binance leadership. He completed a prison sentence in 2024 tied to compliance failures. A presidential pardon later removed legal barriers. Although he describes himself as retired, his policy engagement remains active.
