CZ backs Hong Kong as an RWA and DEX growth hub

Binance founder Changpeng “CZ” Zhao backed Hong Kong as a potential Web3 and real-world asset hub during an August 27 book meeting in the city.

The event took place at Exchange Square in Central, according to the organizer. CZ discussed Hong Kong’s financial sector, tokenized securities and the development of decentralized exchanges. His comments represented personal forecasts rather than new Binance projects or investment commitments.

CZ says Hong Kong can connect finance with Web3

CZ said Hong Kong benefits from its status as a financial center, access to professionals from mainland China and established institutional relationships. He described Hong Kong and Web3 as a “powerful combination.”

He also named Dubai, Abu Dhabi and the U.S. as markets positioned to benefit from more supportive digital asset policies. These comments were assessments of their prospects. They did not include new licensing applications or expansion plans from Binance.

Hong Kong has introduced a broader regulatory structure covering exchanges, stablecoins and tokenized products. Its approach differs from mainland China, where authorities maintain tight restrictions on cryptocurrency trading and related activities.

The city’s policy direction has attracted financial institutions and asset managers. As crypto.news reported in its coverage of Hong Kong’s stablecoin and custody rules, regulators have sought to expand tokenized finance while retaining licensing and investor-protection requirements.

Hong Kong’s RWA market supports part of CZ’s forecast

CZ predicted that real-world assets would become a major area of Web3 development. He focused on tokenized securities, which can provide wider access beyond traditional market hours and national account systems.

He also described stablecoins as a form of RWA because they place claims linked to fiat currencies on blockchains. That description reflects a common industry classification, although the legal treatment of stablecoins differs between jurisdictions.

Hong Kong has already moved beyond small technical tests. The Securities and Futures Commission said 13 tokenized products were offered to the public as of March 2026. It subsequently introduced a framework covering tokenized products and their secondary-market trading.

The Hong Kong Monetary Authority is also operating EnsembleTX, the pilot phase of Project Ensemble. The pilot supports real-value transactions involving tokenized deposits and digital assets. It is scheduled to operate throughout 2026.

In related coverage, Franklin Templeton recently brought a tokenized U.S. government fund to HashKey, adding another distribution channel for regulated tokenized investments.

CZ expects DEX growth if U.S. pressure continues easing

CZ said decentralized exchanges have progressed from early platforms such as Uniswap and PancakeSwap to newer markets including Hyperliquid. He argued that better infrastructure and stronger user awareness have made DEXs more competitive.

He added that U.S. regulatory pressure appeared to have eased and said continued policy changes “may accelerate” DEX and broader crypto growth. That remains a forecast. Decentralized services can still face securities, commodities, sanctions and anti-money-laundering requirements, depending on their structure and operations.

The SEC and CFTC issued a joint crypto asset interpretation effective March 23. The agencies said clearer classifications could reduce perceived regulatory risk and encourage more U.S. activity. The document did not create a blanket exemption for DEX developers or interface operators.

Market data nevertheless show growing usage. As previously reported, DEX spot volume reached about 24% of covered centralized exchange volume in July. The comparison depends on the exchanges and methodology included.

Regulatory milestones will determine what happens next

Hong Kong’s next steps include implementing its tokenized product framework, continuing EnsembleTX and developing its licensed stablecoin market. Those programs will offer measurable evidence for or against CZ’s RWA forecast.

In the U.S., further SEC and CFTC rulemaking will determine whether decentralized platforms receive specific compliance routes. Until those rules are settled, claims that international DEXs can operate without full customer checks require jurisdiction-specific legal review.