Binance founder Changpeng “CZ” Zhao said crypto’s next phase could be shaped by a convergence of AI agents, stablecoins, tokenized real-world assets and friendlier regulation, while arguing that Bitcoin is likely to adapt to future quantum-computing risks rather than be displaced by them.
Speaking on ARK Invest’s FYI podcast, Zhao said AI agents could become major users of crypto rails because autonomous software will need fast, global and programmable ways to transact.
He also said the industry is moving toward broader tokenization of assets such as gold, oil and stocks, while stablecoins could face heavier competition as users search for better returns.
AI agents could become major crypto users
CZ said one of the clearest areas where AI could accelerate crypto adoption is payments, especially as software agents begin making transactions on behalf of users and businesses.
“AI agents are going to transact 10 100, 1000 times more transactions than humans can do,” Zhao said, adding that AI systems are more likely to use crypto than traditional payment networks for global transactions.
Zhao also noted that AI could speed up blockchain development itself by helping engineers write code faster and build safer wallets, faster networks and more usable applications.
If autonomous systems begin buying data, paying for services or settling small transactions online, Zhao suggested crypto networks could become a natural settlement layer.
Tokenized assets are growing faster than expected
CZ said parts of the industry have developed in ways he did not expect, pointing to the rise of stablecoins and the growing demand for tokenized traditional assets.
He said he once viewed Tether as a temporary tool for traders to hold fiat-pegged value during market downturns, but stablecoins grew far larger than he expected. Zhao also said tokenized gold has become unexpectedly active on crypto exchanges.
“I didn’t expect gold to be that actively traded on crypto exchange,” Zhao said, adding that Binance has become a major venue for gold trading outside traditional markets after listing the product.
CZ said the listing of assets such as gold and oil shows traditional markets and crypto are beginning to merge. He credited BlackRock CEO Larry Fink with helping shift traditional finance toward tokenization, saying Fink’s support gave the idea more weight among financial institutions and world leaders.
“Everything will be tokenized,” Zhao said, describing the long-term direction of financial markets as one where old and new systems increasingly become part of the same industry.
Exchanges push toward ‘everything platforms’
Zhao said crypto exchanges are likely to keep expanding beyond spot crypto trading as users demand access to more asset classes from a single platform.
“Everyone wants to be the everything exchange,” Zhao said. “That’s kind of normal.”
He added that centralized exchanges may continue to attract mainstream users because decentralized platforms remain too complex for many non-technical investors, though decentralized exchanges could gain ground as wallets become easier and safer to use.
Zhao said the future of exchanges will depend partly on regulation, geography and user experience, adding that the U.S now has a stronger regulatory position than it did less than two years ago, when the country was widely seen as hostile to crypto.
“I was very surprised by the 180 degree turn in the US,” Zhao said, referring to the shift toward a more pro-crypto environment.
Stablecoin yields could reshape competition
Zhao said stablecoins are likely to become more competitive as issuers look for ways to reward users, even if some jurisdictions restrict direct yield payments.
He said Tether remains dominant, but newer stablecoins could gain share if they offer better economic benefits, lower fees or easier trading, adding that companies that pass value back to users could have a major advantage.
“I personally think that stablecoin should generate interest for the users,” Zhao said.
Zhao also said that crypto firms and stablecoin issuers should preserve one of the industry’s key differences from traditional banking: full reserves.
“Crypto exchanges and stablecoin issuers should maintain one-to-one backing. They should maintain 100% reserves,” Zhao said.
He said banks face bank-run risks because they operate on fractional reserves, while major crypto exchanges and stablecoin issuers have generally held assets one-to-one. Zhao added that there are still ways to generate yield under a full-reserve model, but companies should follow local rules where such payments are restricted.
Quantum risk is a coordination problem, not the end of bitcoin
CZ also addressed concerns that quantum computing could threaten Bitcoin’s cryptography, saying he does not see it as an unsolvable problem.
He said he expects Bitcoin and other major blockchains to upgrade to quantum-resistant encryption if the risk becomes more urgent. Other chains may move faster because they have more centralized leadership or faster governance, he said, while Bitcoin may require a broader community process.
“It’s not a problem without a solution,” Zhao said, adding that the industry would need coordination to address quantum-computing risks.
CZ said one difficult question would be what to do with Satoshi-era coins if quantum computing creates a risk to dormant addresses. He said the community may need to decide whether to freeze or burn such coins if they are not moved before a future upgrade.
“What we do with the Satoshi coins is we’ll figure it out,” Zhao said, describing it as a philosophical issue for the Bitcoin community.
Bitcoin outlook tied to markets and institutions
Zhao said he remains optimistic on Bitcoin, though he cautioned that his view should not be treated as financial advice.
He said Bitcoin has already seen a pullback consistent with the historical four-year crypto cycle, but argued that stronger stock markets, institutional flows and geopolitical uncertainty could support the asset.
Zhao added that institutional investors tend to make decisions slowly and hold positions for longer periods, which could help stabilize Bitcoin over time.
“Most institutions are long term holders,” Zhao said. “With them coming into the ETFs, that’s really going to stabilize the price and hopefully cause it to increase.”
Zhao concluded that he remains hopeful the worst of Bitcoin’s correction may be over, saying stronger market conditions and institutional inflows could help the recovery move faster than in previous bear-market cycles.
