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Binance founder CZ says “Let’s tokenize everything.”
CZ emphasizes that he supports tokenization across all blockchains, arguing that while it creates a fragmented liquidity problem, having multiple players pushing the sector forward is the fastest way to grow it.
He adds that greater interchangeability between different issuers could help address fragmentation over time.
The Fragmentation Problem !
Zhao indicated that he supports tokenization across all blockchains. He also added that a multi-chain approach could fragment liquidity.
Financial market infrastructure companies have already pointed out the risk of fragmentation. Clearstream, DTCC, and Euroclear jointly published a report with the Boston Consulting Group.
They warn of fragmentation in distributed networks, which traps assets in isolated pools and increases operating costs.
Zhao argues, however, that having multiple players building the market could accelerate the sector's growth. According to him, increased interoperability between issuers could ultimately help solve the liquidity problem.
"Fragmentation can be partially resolved if there is strong interchangeability between different issuers, which is important," he writes.
Zhao is not the only executive advocating for tokenization. Robinhood CEO Vlad Tenev described it this week as the best way to modernize American finance.
https://x.com/cz_binance/status/2090590687657922579