CZ In Talks With Dozen Governments on State Asset Tokenization

Source: CryptoTale Original Title: CZ Is In Talk With A Donzen Countries On Asset Tokenization Original Link:

Overview

Key Highlights:

• CZ, co-founder of a leading crypto exchange, revealed he is in talks with “probably a dozen governments” regarding tokenization of state-owned assets
• Tokenization could enable governments to raise capital by selling fractional stakes in public holdings
• BlackRock has flagged tokenization as a major 2026 theme, with institutional crypto adoption accelerating

Government Tokenization Discussions

CZ shared these remarks at the World Economic Forum in Davos, highlighting how tokenization could unlock value earlier in development cycles. Rather than waiting for long-term projects to mature, governments could realize financial gains first and reinvest them into related industries.

Previous public statements referenced engagement with several countries including Pakistan, Malaysia, and Kyrgyzstan. Kyrgyzstan, for example, has already launched a som-pegged stablecoin and announced plans for a dollar-pegged stablecoin backed by $300 million in gold reserves—signaling broader state experimentation with digital assets.

Tokenization could follow privatization models already used by states selling stakes in national oil firms and telecom companies. However, digital rails would enable smaller allocations to be offered to citizens and investors, rather than limiting sales to large block transactions.

Crypto as Payment Infrastructure

CZ emphasized that crypto could function as an invisible payment rail without requiring merchants to directly hold digital assets. Card-based layers could enable users to pay in crypto while merchants receive traditional currency, with conversion occurring during settlement. This approach reduces friction for business adoption while maintaining familiar checkout methods.

Traditional payment systems are increasingly converging with crypto infrastructure, according to CZ’s analysis, creating new possibilities for local-currency settlement and cross-border transactions.

AI Agents and Machine-to-Machine Payments

CZ highlighted an emerging use case: autonomous AI systems requiring programmable settlement for transactions. “The native currency for AI agents will be crypto,” he stated, arguing that traditional banking rails are not designed for machine-driven global micro-payments.

As automation expands, machine-to-machine payment flows are expected to grow significantly. Programmable tokens enable conditional payments and automated execution—capabilities that blockchain networks can provide at scale.

Institutional Momentum

BlackRock’s latest research supports this narrative. The firm’s “2026 Thematic Outlook” report lists crypto and tokenization as major themes reshaping the investment landscape. BlackRock positioned crypto not merely as a speculative asset class, but as critical infrastructure for payments, settlement, and liquidity management.

The firm cited its spot Bitcoin ETF (IBIT) as evidence of demand, noting it became the fastest-growing exchange-traded product in history since launching in January 2024. This institutional adoption signals broader market recognition of crypto’s infrastructure role.

Looking Ahead

While no finalized agreements were announced and specific timelines remain unclear, CZ’s remarks suggest tokenization is transitioning from concept to policy discussions. Public finance could emerge as a core blockchain use case, fundamentally changing how governments fund assets and distribute investment access globally.