Binance founder Changpeng Zhao (CZ) has once again stepped into the spotlight of the debate over the future of real-world assets (RWA), stating that tokenization is the most powerful catalyst for attracting foreign direct investment (FDI). However, in his view, there is a flip side to the coin: issuing assets across multiple blockchains simultaneously carries a serious risk of liquidity fragmentation, which could undermine the very idea of global accessibility.
Global tokenization as a tool for sovereign financing
Zhao views tokenization not merely as a technological trend, but as a strategic tool for states. He emphasizes that issuing tokenized equities gives countries direct access to international capital, allowing them to sell stakes in national companies worldwide without traditional intermediaries. "Tokenization is one of the best ways for countries to 'raise money' or increase FDI," he notes, while advising the governments of Pakistan and Kyrgyzstan on these matters.
The market is already confirming his optimism. Based on my estimates, drawn from the latest industry data, the value of tokenized real-world assets has grown by 2.16% over the past month, reaching $38.4 billion. At the same time, the number of holders of such assets has surged by 79.74% — to 2.379 million people. However, the total value of represented assets has dipped slightly (down 4.66%, to $342.63 billion), indicating a redistribution of interest within the sector rather than stagnation.
Fragmentation: the main enemy of liquidity
Despite supporting the multi-chain approach, CZ warns of the flip side of the coin. Issuing the same assets on different blockchains, in his view, inevitably leads to fragmentation of liquidity pools. This creates inefficiencies and raises operational costs, which is especially critical for institutional players.
This issue has long troubled giants of financial infrastructure. Entities such as Clearstream, DTCC, and Euroclear, together with Boston Consulting Group, have dedicated a separate analytical report to this topic. They concluded that fragmentation "locks" assets in isolated pools, making the market less transparent and more expensive for participants.
Zhao himself sees the solution in increasing interchangeability among issuers. He is confident that, over time, the market will self-organize and find ways to interact, which will ease the severity of the problem. "Fragmentation can be partially solved if there is high interchangeability between different issuers, and that is important," he emphasizes.
Interestingly, Zhao is not alone in his vision. Robinhood CEO Vladislav Tenev this week called tokenization the best way to modernize the U.S. financial system, indicating a consensus among industry leaders.
My view: An 80% increase in the number of holders alongside modest growth in market capitalization is a classic signal of "retail entry" in anticipation of an institutional rally. However, if the interoperability problem is not resolved at the protocol level, we risk ending up not with a unified global market, but with a set of isolated "digital offshore zones," which in the long term will slow RWA adoption. I advise investors to keep an eye on the development of cross-chain solutions — this will become a key driver of sector growth.