Changpeng Zhao warns: liquidity fragmentation is the main threat to tokenization
Binance founder Changpeng Zhao (CZ) has once again addressed the topic of real-world asset tokenization, highlighting a key risk in this process. In his view, issuing tokenized instruments simultaneously on multiple blockchains could lead to a serious fragmentation of liquidity, which would become an obstacle to the growth of the entire sector.
Tokenization as a tool for attracting capital
Zhao views tokenization as a powerful mechanism for states seeking to attract foreign direct investment (FDI). In his recent statements, he emphasized that this is one of the most effective ways to "attract money" and expand access to global capital markets. Moreover, he is already advising the authorities of Pakistan and Kyrgyzstan on digital asset regulation, promoting the idea of issuing tokenized shares and national stablecoins.
The market is growing, but risks remain
The tokenization sector continues to demonstrate impressive momentum. Over the past 30 days, the value of tokenized real-world assets has grown by 2.16%, reaching $38.4 billion. At the same time, the number of holders has increased by 79.74% — to 2.379 million. However, the total value of represented assets has decreased by 4.66%, amounting to $342.63 billion, which indicates volatility and heterogeneity in the market.
Fragmentation: the main problem
Zhao warns: issuing assets on multiple blockchains at once risks fragmenting liquidity. This issue has already attracted the attention of the largest players in financial infrastructure. Clearstream, DTCC, and Euroclear, together with Boston Consulting Group, dedicated a separate report to this matter, noting that fragmentation "locks" assets in separate pools and increases operational costs.
Zhao himself sees the solution in high interchangeability between issuers. "Fragmentation can be partially solved if there is high interchangeability between different issuers, and this is important," he stated, expressing confidence that over time market participants will learn to interact with each other more effectively.
Expert opinion
The support for tokenization from figures such as Zhao and Robinhood CEO Vlad Tenev suggests that this trend seriously aspires to transform the financial system. However, the problem of liquidity fragmentation is not just a technical nuance, but a fundamental challenge. Without unified standards and interoperability, the market risks remaining a set of isolated ecosystems, which will slow its mass adoption. Investors should closely monitor the development of this discussion — it is what will determine who becomes the leader of the new era of digital assets.