Key Takeaways
CZ says real-world asset (RWA) tokenization is drawing increasing attention from governments
He points to prediction markets around major global events as another potential growth area
CZ cautions that long-term predictions are uncertain and unexpected sectors may still emerge
Changpeng Zhao has shared his personal view on where capital and builder attention may flow in the crypto industry over the next two to three years, highlighting real-world asset (RWA) tokenization and prediction markets as areas gaining increasing interest.
Speaking during a recent AMA, CZ prefaced his response by noting that long-term predictions are inherently uncertain.
“It’s a prediction question, and my predictions are most likely going to be wrong,” he said.
Growing Government Interest in RWA Tokenization
CZ said one of the most visible trends he is observing is rising global interest in tokenizing real-world assets. Based on his conversations with policymakers and industry participants, he said many countries are exploring ways to tokenize assets within their borders.
According to CZ, tokenization allows governments to raise capital upfront while delivering physical goods or redemption later, creating liquidity and economic activity around previously illiquid assets.
He cited examples such as gold reserves, rare earth minerals, water resources, and even salt, noting that many countries hold valuable natural assets that are not yet fully developed or extracted.
“If you tokenize an asset, you create an economy around that asset class,” CZ said.
He also pointed out that certain resources, such as drinking water, already command high real-world value on a per-unit basis, making them attractive candidates for future tokenization initiatives.
Prediction Markets Around Global Events
In addition to RWAs, CZ highlighted prediction markets as another area that could see increased activity, particularly around major global events.
He said large-scale events such as the World Cup, elections, and other widely followed outcomes tend to drive interest in prediction-based products, as users seek new ways to express views and hedge outcomes.
According to CZ, prediction markets tied to such events are relatively easy to anticipate compared to other emerging sectors.
Expect the Unexpected
Despite outlining these themes, CZ emphasized that crypto innovation often comes from unexpected directions. He noted that some of the most impactful trends historically were not obvious in advance and emerged “out of left field.”
“There are usually some things that come out that you never imagine, and that becomes really hot,” he said.
