Binance Founder Predicts DEX Volumes Will Surpass CEXs as AI Advances
Binance founder Changpeng Zhao (CZ) thinks decentralized exchanges (DEXs) will one day surpass centralized exchanges (CEXs)...
Quick overview
- Changpeng Zhao believes decentralized exchanges (DEXs) will eventually surpass centralized exchanges (CEXs) due to advancements in AI and privacy-focused trading.
- He highlighted the structural advantages of DEXs, including self-custody and enhanced privacy, which are less constrained by regulatory compliance.
- CZ discussed the potential of real world assets (RWAs) in capital markets, while acknowledging challenges like regulatory uncertainty and limited liquidity.
- He emphasized his supportive role in the BNB Chain community, aligning his personal wealth with the ecosystem's long-term success.
Binance founder Changpeng Zhao (CZ) thinks decentralized exchanges (DEXs) will one day surpass centralized exchanges (CEXs), thanks to advancements in artificial intelligence and privacy-focused trading systems. At the BNBDay event in Tokyo, CZ said if he were starting today he would build a perpetual DEX with a simple AI trading agent.
His comments reflect his long term belief in decentralized finance (DeFi). He said an AI enabled trading environment, self-custody and enhanced privacy will give DEXs a structural advantage over CEXs which are constrained by fiat on-ramps and regulatory compliance.
Recent data supports his view: Hyperliquid, a decentralized protocol, has already surpassed several leading CEXs including Coinbase and Bybit in daily trading volumes. This shows DeFi is expanding into mainstream crypto trading.
Real World Assets and Treasury Firms
Beyond DEXs, CZ also talked about real world assets (RWAs) and digital asset treasury (DAT) firms. He said RWAs – securities, commodities and treasuries tokenized on-chain – can unlock new channels for capital markets but there are hurdles.
Key challenges are:
- Regulatory uncertainty and strict KYC requirements.
- Limited liquidity in emerging RWA markets.
- Integration challenges between traditional finance and DeFi.
CZ revealed BNB Chain is allocating resources to RWA focused projects and working directly with builders in the space. He said RWAs are “still in early stages but high potential”.
On treasury firms, CZ said single asset treasury models like MicroStrategy’s Bitcoin strategy or companies holding BNB as reserves provide a way for investors to get crypto exposure through traditional markets.
BNB Chain and CZ
CZ also talked about his role with BNB Chain, saying he is more symbolic than operational. “The BNB Chain is community driven. I don’t do much, mostly tweeting and encouraging people to build. I’m more like a cheerleader,” he said.
He said a large portion of his personal wealth is still tied to BNB, so he is aligned with the ecosystem’s long term success.
CZ’s comments point to a future where DeFi ecosystems go beyond trading and lending, with DEXs, RWAs and treasury structures working together to rival CEXs in scale and adoption.
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