CZ Sees IPOs Moving On-Chain as Tokenization Gains Momentum
Binance founder Changpeng Zhao believes that initial public offerings (IPOs) will soon shift to blockchain technology. This integration of traditional finance and cryptocurrency is already gaining momentum, with the US Securities and Exchange Commission (SEC) pushing for tokenization. In an interview, CZ predicted that IPOs would 'move on-chain', citing the massive demand for pre-IPO perpetual contracts on Binance's platform.
The infrastructure to support blockchain-based securities is being built, with major exchanges exploring 24/7 tokenized stock trading. The SEC has proposed rule changes for transfer agents regarding tokenized securities, reflecting registered transfer agents' use of blockchain in their current operations.
Tokenized stocks and pre-IPO offerings are witnessing significant demand, with platforms such as Securitize and Ondo Finance offering on-chain listings and IPOs. CZ believes that this integration will enable global retail participation, near-instant settlement, and 24/7 availability, reducing reliance on traditional underwriters.