Lede
Changpeng “CZ” Zhao, the former CEO of the cryptocurrency exchange Binance and co-founder of YZi Labs, made a notable appearance at the World Economic Forum (WEF) in Davos, Switzerland. Speaking on a panel this past Thursday, Zhao revealed that he is currently engaged in talks with “probably a dozen governments” concerning the tokenization of their national assets. Zhao identified tokenization as a “huge” and proven aspect of the crypto industry, placing it alongside exchanges and stablecoins as one of the most successful sectors for digital asset development.
According to Zhao, the primary motivation for these discussions is the potential for governments to realize financial gains first through tokenization, which can subsequently be used to fund and develop those specific industries. His comments at Davos suggest a strategic shift for the executive, focusing on the intersection of sovereign finance and blockchain technology. Zhao emphasized that these efforts are part of a broader push to demonstrate how digital assets can be utilized for national development and institutional asset management on a global scale. The discussions with these numerous governments suggest a growing appetite for decentralized financial mechanisms at the state level, where Zhao’s expertise is being sought to navigate the complexities of digital asset integration.
Context
Zhao’s recent advisory work with various national governments builds upon his previous experience in the sector. He has previously worked directly with government officials in Kyrgyzstan as part of specific efforts to promote the country’s som-pegged stablecoin. This work in Central Asia highlights his long-standing interest in sovereign digital currencies and national financial frameworks. His involvement in regional regulatory discussions expanded significantly in early 2025, with several major initiatives occurring across Asia.
In January 2025, Malaysian government officials reportedly held discussions with Zhao regarding the establishment of a potential crypto regulatory framework for the country. Shortly thereafter, in March 2025, the Pakistan Crypto Council was established and subsequently named Zhao as an official adviser. These roles indicate that Zhao continues to be a sought-after figure for state-level crypto policy and infrastructure development, despite his departure from operational leadership at Binance. His role as co-founder of YZi Labs provides a platform for these high-level engagements with governments seeking to modernize their financial systems through the adoption of blockchain technology and regulatory frameworks.
Impact
During his address at Davos, Zhao also provided a critical assessment of the current state of crypto payments, highlighting significant hurdles. He noted that although exchanges and stablecoins have seen significant growth, the industry has not yet fully conquered the payments space. Zhao observed that despite various attempts to implement digital asset transactions, the adoption rate remains low, noting that the industry has not really started in this regard. He characterized this as an area of convergence between traditional and digital methods that remains a challenge for the sector.
The impact of Zhao’s personal legal challenges also remains a focal point of his public profile. In 2024, Zhao served a four-month prison sentence as part of a deal with United States authorities. This legal action was tied directly to his failure to implement a proper Anti-Money Laundering (AML) program during his tenure at Binance. This failure eventually necessitated his resignation as CEO of the exchange. These events significantly altered his career trajectory, moving him away from the day-to-day operations of the world’s largest exchange and toward his current focus on independent advisory roles and sovereign consultancy in the broader blockchain ecosystem.
Outlook
The future path for Zhao became significantly clearer in October when US President Donald Trump issued him a pardon. This presidential action effectively cleared the felony charge and plea agreement that would have likely prevented him from assuming a leadership role at a crypto exchange following his release from prison. By removing these legal barriers, the pardon opened the door for a possible return to Binance. This development sparked significant speculation regarding his future role in the industry he helped shape and whether he would resume a position of power.
Despite the restoration of his legal standing, Zhao appears to be maintaining a different professional focus. In statements made in December, he indicated that he was “retired,” suggesting that he has no current plans to resume his former duties as the head of the crypto exchange. Instead, his outlook remains focused on his retirement and his ongoing work with YZi Labs. His continued dialogue with a dozen governments regarding asset tokenization suggests that while he may not return to the role of CEO, his influence on the global regulatory and sovereign adoption of cryptocurrency will continue through advisory and strategic consultation for the foreseeable future.
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