CZ: Tokenization Can Attract FDI but Risks Liquidity Fragmentation
Binance founder Changpeng Zhao says governments can use tokenized assets to draw foreign investment but warns multichain issuance may split liquidity.
Binance founder Changpeng Zhao urged governments to use asset tokenization to raise capital and attract foreign investment, while warning that distributing assets across multiple blockchains could fragment market liquidity.
Zhao made the argument in a social media post Thursday, according to BeInCrypto, whose report was republished by Mitrade.
He said countries and companies could use tokenized equities to reach investors globally rather than relying only on conventional domestic market infrastructure.
The argument builds on recommendations Zhao made in June, when he encouraged governments to move stock markets onchain and consider national stablecoins.
Zhao supports tokenization across multiple blockchain networks, but said that approach can leave liquidity divided between different issuers and ecosystems.
He said stronger interchangeability between issuers could help reduce that problem.
Zhao has advised Kyrgyzstan on blockchain and Web3 strategy and participated in digital asset policy discussions in Pakistan.
No specific government or company was named as adopting the approach, and no timeline or scale of potential FDI impact was provided.