The Street, a financial news publication founded by Mad Money’s Jim Cramer, recently cut out some time to sit down with Changpeng “CZ” Zhao, CEO of Binance, to get an inside scoop on the exchange’s dealings, prospects, and perspectives regarding cryptocurrencies and blockchain technology.
Binance CEO: “Fidelity’s Foray Suggests The Crypto Market Cap Will Grow A Lot More.”
Speaking with The Street’s Jordan French, Zhao touched on a number of subjects, from Binance’s infant months to the project’s agenda, and, most interestingly, to the CEO’s personal views on institutional interest in this industry.
Queried about the influx of institutional involvement in crypto as of late (think ICE’s Bakkt, TD-backed ErisX, and Fidelity Digital Asset Services), Zhao, a former Bloomberg employee, noted that “increase institutional participation is a very good thing.” Bringing up a specific example, the Binance CEO explained that Fidelity Investments, a Boston-based investment giant, manages $2 trillion in assets, which is more than 10 times the current aggregate value of all cryptocurrencies.
So, considering this fact alone, CZ explained:
The fact that Fidelity is moving in to the space (by launching digital asset trading services last month) suggests the crypto market cap will grow a lot more.
Almost likening the growth of a market to a snowball rolling down a snow-clad hill, Zhao then noted that as this market swells, more investors will be enticed to foray into this market and industry, further boosting prices. CZ then discussed stability and non-volatility and its relation to institutional involvement. He explained that as stability declines, adoption levels, both in merchant and investment capacities, is likely to improve, subsequently adding that it is “just a matter of time.”
In short, Zhao explained that the arrival of institutional players “is basically a very net positive.”
Discussing the specifics of crypto-involved institutions as it stands, the Binance executive drew attention to U.S. players, noting that like capital markets, American investors lead the pack, even while regulation is strict. But, he explained that institutional adoption is ramping up in Europe and Singapore, with the latter nation’s relatively lax regulations that have enticed new players to make a foray into cryptocurrencies.
This, interestingly, is a tidbit of insight that many crypto enthusiasts would fail to notice, as crypto media takes a focus on U.S. players and products. Regardless, the fact that Binance recently established a crypto-to-fiat platform in Singapore indicates that this industry’s fundamentals are shifting under the radar, and hopefully for the better.
Zhao’s most recent comments come just weeks, if not days after he took to CNBC Africa’s Crypto Trader to tell host Ran NeuNer that “sooner or later” any number of catalysts will spark crypto’s next bull run.
Binance Has Ambitions To Become The Google Of Blockchain
Concluding his interview, Zhao spoke on his ambitions for his brainchild — Binance. CZ noted that eventually, he wants people to use the world “Binance” as a verb, just like digital citizens use “Google” on the day-to-day. He elaborated:
An infrastructure services provider — that’s our ultimate goal. Today, if you drive on the road, you don’t think about driving on a road; you just drive. You find a road and you drive on it. We want to be the road.
Binance and Magnifying Glass Image Courtesy of Marco Verch on Flickr