CZ Backs Hong Kong as Major Hub for Web3 and Real-World Assets

Binance founder Changpeng 'CZ' Zhao believes Hong Kong is poised to become a major growth hub for Web3 and real-world assets (RWAs). During an August 27 book meeting in the city, CZ said that Hong Kong's status as a financial center, combined with its access to professionals from mainland China and established institutional relationships, makes it an ideal location for Web3 development.

CZ pointed out that Hong Kong has already made significant progress in this area. According to data from the Securities and Futures Commission (SFC), 13 tokenized products were authorized by March 2026. He also noted that the city's regulatory framework, which includes a broader structure covering exchanges, stablecoins, and tokenized products, is more supportive of digital asset policies compared to mainland China.

CZ predicts that real-world assets will become a major area of Web3 development, with tokenized securities providing 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.

In related news, Franklin Templeton recently brought a tokenized U.S. government fund to HashKey, adding another distribution channel for regulated tokenized investments. CZ believes that decentralized exchanges (DEXs) have progressed significantly and are becoming more competitive due to better infrastructure and stronger user awareness.

He also noted that easing U.S. regulatory pressure could accelerate DEX growth, but added that continued policy changes 'may accelerate' broader crypto growth. The SEC and CFTC issued a joint crypto asset interpretation in March 2023, which said clearer classifications could reduce perceived regulatory risk and encourage more U.S. activity.