Changpeng Zhao: liquidity fragmentation is the main threat to the future of tokenization
Binance founder Changpeng Zhao (CZ) has once again found himself at the center of the debate over the future of real-world asset tokenization. While the market is experiencing an impressive surge — with the market capitalization of tokenized instruments reaching $38.4 billion — Zhao is highlighting a systemic issue that could slow down the development of the entire industry.
In my deep conviction, tokenization is not just a passing trend, but a fundamental shift in the global financial architecture. Zhao sees it as a powerful catalyst for attracting foreign direct investment (FDI), allowing countries and companies to sell equity tokens worldwide. The logic is simple: why limit yourself to the local capital market when you can step onto the global stage?
Market growth and a hidden threat
The numbers confirm the optimism. Over the past 30 days, the value of tokenized assets has grown by 2.16%, and the number of holders has increased by 79.74% — to 2.379 million. However, Zhao warns that issuing assets on multiple blockchains simultaneously creates dangerous fragmentation. Liquidity is dispersed across isolated pools, which raises operational costs and reduces trading efficiency.
This is not just a theoretical concern. The largest players in financial infrastructure — Clearstream, DTCC, and Euroclear — together with Boston Consulting Group, have already dedicated a separate report to this issue. They emphasize that fragmentation "locks" assets within individual ecosystems, hindering the free movement of capital.
A look to the future
Zhao, who advises the authorities of Pakistan and Kyrgyzstan on digital asset regulation, is constructively minded. He is confident that fragmentation is a temporary phenomenon. As interchangeability between issuers and networks grows, the market will naturally consolidate. Robinhood CEO Vlad Tenev also supports tokenization, calling it the best way to modernize the U.S. financial system.
My analysis: Zhao's position reflects the maturity of the industry — we are moving from euphoria to deliberate construction. Fragmentation is indeed the main obstacle: without standardization and interoperability, tokenized assets risk remaining a niche product. Investors should closely monitor the development of cross-chain solutions, as they will determine who becomes the leader of the next stage of the market.