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Binance founder Changpeng Zhao has urged governments and companies to use asset tokenization to attract global capital and foreign investment. He also warned that issuing assets across several blockchains could divide liquidity and weaken trading efficiency. BeInCrypto reported the comments Thursday, and Mitrade republished the report.
Zhao said tokenized equities could help companies reach investors beyond domestic market systems. He argued that blockchain markets could broaden access across borders and outside conventional exchange hours.
For governments, Zhao linked tokenization directly to foreign direct investment. The model could prove especially relevant in emerging markets where domestic capital markets offer fewer channels for international investors.
His latest position builds on comments from June. At the time, Zhao encouraged governments to move stock markets onchain and consider developing national stablecoins.
Still, tokenization would not remove securities laws, foreign ownership restrictions, or currency controls. Governments would need to address those rules before using blockchain assets to attract overseas capital.
Zhao supports competition among blockchain networks, yet he warned that multiple issuers and ecosystems can split buyers and sellers into separate pools. Such fragmentation can reduce liquidity and make trading less efficient.
What happens if tokenized markets expand quickly but investors and assets remain trapped inside incompatible networks? Zhao said stronger interchangeability between issuers could help reduce that risk.
Clearstream, DTCC, and Euroclear raised a similar concern in March. Working with Boston Consulting Group, they said tokenized securities need interoperability to preserve asset mobility and market liquidity at institutional scale.
The firms identified common standards for ownership, asset transfers, ledgers, and regulatory compliance as important areas for compatibility. Without those connections, digital securities can remain isolated within separate blockchain environments.
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DTCC said in July that it had processed U.S. trades using tokenized versions of securities. The firm plans to launch a tokenization service in October. The development shows traditional market infrastructure providers are also moving toward blockchain settlement. Clearstream, DTCC, and Euroclear have argued that interoperability can protect liquidity, fungibility, security, and asset mobility.
Meanwhile, Zhao has advised Kyrgyzstan on blockchain and Web3 strategy and joined digital asset policy discussions in Pakistan. In June, he also discussed tokenized equities with government leaders and regulators in Asia.
His latest comments place capital formation at the center of that strategy. Zhao argues that tokenization could connect domestic assets with larger international investor pools while stronger interchangeability could limit market fragmentation.
Zhao’s proposal links asset tokenization with wider global investment access, while his warning centers on fragmented liquidity across blockchain networks. Clearstream, DTCC, and Euroclear have raised similar interoperability concerns as traditional market operators prepare tokenized securities services and governments explore blockchain-based financial systems.
