CZ Backs Hong Kong as a Web3 and RWA Hub
Binance founder Changpeng “CZ” Zhao backed Hong Kong as a potential Web3 and real-world asset (RWA) hub during an Aug. 27 book meeting in the city. The event took place at Exchange Square in Central and saw CZ discuss Hong Kong’s financial sector, tokenized securities, and the development of decentralized exchanges (DEXs). His comments represented personal forecasts rather than new Binance projects or investment commitments.
Why Hong Kong Stands Out for Web3
During the meeting, 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.”
Zhao 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, not 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. This policy direction has attracted financial institutions and asset managers, with regulators seeking to expand tokenized finance while retaining licensing and investor-protection requirements.
Real-World Assets and Hong Kong’s Tokenization Push
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.
13 Tokenized Products Approved by March 2026
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.
Project Ensemble and Institutional Momentum
The Hong Kong Monetary Authority is operating EnsembleTX, the pilot phase of Project Ensemble. The platform supports real-value transactions involving tokenized deposits and digital assets and is scheduled to operate throughout 2026.
In related coverage, Franklin Templeton recently brought a new offering to the market, adding another distribution channel for regulated tokenized investments.
DEX Growth and U.S. Regulatory Tailwinds
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, because decentralized services can still face securities, commodities, sanctions and anti-money-laundering requirements depending on their structure and operations.
SEC and CFTC Joint Framework
The SEC and CFTC issued a joint crypto asset framework 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, July figures reflected that trend, although the comparison depends on the exchanges and methodology included.
What Regulatory Milestones Will Determine 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.
