CZ advocates for tokenisation of all assets on all blockchains

Changpeng Zhao, better known as CZ, the founder of Binance, advocates broad tokenisation of assets on all blockchains. According to him, tokenisation is one of the best ways for countries to raise capital and attract foreign direct investment. He acknowledges that tokenisation on multiple blockchains at once leads to fragmented liquidity, but sees this as an acceptable price for rapid growth of the sector.

In short:

• CZ states that countries and companies have an interest in selling tokenised shares to a global audience.
• He supports tokenisation on all blockchains, even though this creates fragmented liquidity.
• According to CZ, fragmentation can be limited when assets from different issuers are readily interchangeable.

Tokenisation as a means to attract investors

CZ states that tokenisation gives countries and companies the opportunity to offer their shares to investors worldwide. Which country or company would not want to take advantage of that, he asks rhetorically.

Tokenisation makes it possible to record ownership rights of physical or financial assets on a blockchain. This allows investors to participate globally in markets that were previously difficult to access.

Fragmented liquidity as a downside

CZ admits that tokenisation on multiple blockchains at the same time presents a problem: liquidity becomes spread across different networks. Nevertheless, he deliberately chooses this approach, because according to him, several parties working on the sector simultaneously stimulate growth the fastest.

He adds that the problem of fragmentation can be partially solved when assets from different issuers are readily interchangeable. In his view, this interchangeability is crucial for the sector to function well in the long term. Previously, thelatestcryptonews.com reported on other initiatives from the Binance ecosystem, including the launch of an AI development platform.