Changpeng Zhao Champions Stablecoin 2.0 as BNB Chain Redefines Its Value

Changpeng Zhao, founder of Binance, is channeling his efforts into resting on education initiatives and advancing projects as he looks ahead to 2025, with a focus on BNB Chain, Stablecoin 2.0, prediction markets, and AI technology.

Key Takeaways

Focus Areas: Changpeng Zhao is prioritizing four main sectors: Giggle Academy, YZi Labs, BNB Chain, and government advisory roles.
Stablecoin Evolution: Zhao is advocating for the development of next-generation stablecoins, which he calls "Stablecoin 2.0," emphasizing the need for sustainable yields.
Prediction Markets: Zhao believes prediction markets will continue to grow, citing successful platforms from recent U.S. election cycles.
Patience in Growth: Zhao emphasizes that building a successful project takes time and commitment, and he aims to support long-term visionaries in the space.

CZ discusses BNB Chain, stablecoins and prediction markets

Zhao’s recent activity has been anything but quiet. After receiving a pardon, he has invested his time into an education app, funding new projects through YZi Labs, and even advocating for favorable regulations from coffee shops in Dubai. “Whether in terms of freedom, closure, or simply turning the page, it’s about feeling unburdened and ready to progress,” Zhao stated. He emphasized that his daily life revolves around his home routine and fitness rather than traditional trading.

The New Foundations of Changpeng Zhao’s Focus

Zhao has identified four key areas of focus: Giggle Academy, YZi Labs, the BNB Chain ecosystem, and his advisory roles with governments spanning from Pakistan to the UAE. Giggle Academy is a free educational platform that has already attracted over 90,000 children and is supported by approximately 60 team members who are continuously improving the service.

In addition to this, YZi Labs serves as Zhao's primary investment and mentoring hub. “I act more like a mentor and coach, assisting founders and developers in their growth,” Zhao remarked. His team assessed over 1,000 projects in 2025 and finalized close to 70 investments, many of which contribute directly to the BNB Chain and its EASY Residency program. This builder-first philosophy has led to the establishment of a dedicated $1 billion Builder Fund aimed at sectors such as DeFi, AI, real-world assets, and biotech on the BNB Chain, coinciding with the network’s ambition to enhance confirmation speeds and user engagement.

On-chain, BNB BNB bn0.2% BNB Chain has transitioned from being seen as “undervalued” to becoming one of the most active blockchain networks. Daily active addresses have stabilized around 2 million, with earlier reports indicating figures near 2.4 million. The transaction volume on-chain has surged by about 600% year-on-year, placing BNB Chain among the foremost networks concerning throughput. Alongside this growth, BNB’s spot and derivatives markets have attracted numerous volatility traders. Following a significant downturn in October that eliminated nearly $19 billion in leveraged positions across the market, BNB experienced a modest drop of roughly 10% before recovering and trading within a fluctuating range of $1,100 and $1,340, ultimately achieving new peaks above $1,330. Current order books reveal solid bid support just below $1,100, with a considerable resistance level present in the $1,330 to $1,370 range—indicating potential movements for future market positions. A decline below the $1,100 threshold could derail this upward momentum, while a rise above $1,370 would likely attract additional buying interest headed toward $1,450 to $1,600.

Despite all this market activity, Zhao focuses more on the evolution of stablecoins rather than immediate price movements. He is candid in his assessment: “What we see now is largely ‘stablecoin 1.0,’ while real ‘2.0’ is just getting started.” The prevailing model—converting dollars held in banks into tokens like Tether’s USDT—is still the standard, primarily supported by network effects that keep USDT in a dominant position, despite its lack of competitive yield. “USDT is not particularly enticing in terms of yield, opening doors for other stablecoin alternatives,” he pointed out, highlighting newer models like Ethena, which integrates yield mechanisms into its design, and in which YZi Labs has invested.

Future Prospects for BNB and YZi Labs

When discussing BNB Chain, Zhao refers to the competitive landscape of stablecoins as an “open garden” rather than simply a race. USDT operates on BNB Chain as a wrapped asset, but Zhao emphasizes the potential of truly native options like USD1, a model backed by U.S. collateral, along with earlier concepts like FUSD that faced challenges with issuance mechanics, and innovative new projects like the $U initiative, which he deems promising. The ultimate goal, according to Zhao, is to create a stablecoin that is easy to trade, widely available, and provides sustainable yields. Any design that fails to meet these criteria is one to overlook.

Zhao is equally optimistic about prediction markets, dismissing the notion that they are just a passing trend. He attributes influential developments in this area to platforms like Kalshi and Polymarket, particularly highlighted during the recent U.S. elections, where Polymarket recorded over $3.6 billion in betting volume, often outperforming traditional polling in accuracy. “Real money stakes lead to more precise outcomes than conventional polling,” he noted. YZi Labs is backing several nascent prediction market ventures, including BNB Chain projects such as Probable and the newly launched Opinion, where Zhao confirmed that his firm is a minority stakeholder.

He stresses that this landscape does not follow a “winner-takes-all” rule. “In any market, multiple players typically coexist,” Zhao explained, drawing parallels among exchanges, stablecoins, and prediction markets. This approach also informs his skepticism regarding subscription-based AI trading tools; profitable strategies offered for sale tend to deteriorate over time. Businesses reliant on platforms—such as exchanges, prediction markets, and real-world asset tokenization—can grow through their fees and spreads, but shared knowledge or strategies tend to become diluted quickly.

A significant theme in Zhao’s strategy for 2025 is patience. “Success doesn’t come overnight,” he emphasized, likening BNB Chain’s journey to the prolonged success of Nvidia, and comparing building processes to a “marathon mixed with a boxing match.” He is eager to support mission-driven founders rather than transient players chasing the latest trends, as he believes they will be the ones who stand firm in 2027, even as current market narratives evolve or fade away.