CZ Pushes for Global Tokenization Amid Liquidity Concerns

Binance founder Changpeng Zhao (CZ) is advocating for countries to tokenize their assets, which he believes can help them raise money and attract foreign investment. He noted that tokenization could be a funding tool for states, allowing them to sell tokenized stocks globally.

CZ pointed out the benefits of tokenization, saying 'Tokenization is one of the best ways for countries to “raise money,” or attract FDI (Foreign Direct Investment),' he said. He made this pitch in a recent post on the matter.

The total value of distributed assets through tokenization has reached $38.40 billion, according to RWA.xyz. This represents a 2.16% increase over the past 30 days. However, while the number of holders grew by 79.74%, the represented asset value declined by 4.66%

CZ also acknowledged that tokenizing assets on multiple blockchains could lead to fragmentation of liquidity. He suggested that this issue can be addressed if there is high interchangeability amongst different issuers, which would help accelerate the sector's growth.