Crypto▲ Bullish
CZ Pushes Tokenization as a Tool for Countries to Draw Investment
Binance founder CZ says countries should tokenize assets to raise money and draw foreign investment, but questions remain on legal and technical standards.
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Binance founder Changpeng Zhao, known as CZ, said on August 21 that countries should use asset tokenization to raise money and attract foreign investment. He posted the idea on X, writing that governments and companies both have reasons to sell tokenized shares to buyers around the world.
Tokenization turns ownership of an asset into a digital unit that lives on a blockchain. Shares, bonds, funds, property and commodities can all be represented this way.
CZ argued the method could help draw in foreign direct investment, or FDI. FDI usually means a foreign investor takes a lasting stake and holds at least 10% of a company's voting power, based on the OECD's definition. Smaller token purchases would likely count as portfolio investment instead. Whether a sale qualifies as FDI depends on the buyer's location, ownership share and voting rights.
CZ also said he supports putting tokenized assets on many different blockchains rather than picking just one. He said this lets more teams build tokenization tools at the same time. That approach splits trading activity and money across separate markets, which can lead to different prices, wider gaps between buy and sell orders, and thinner trading books for the same underlying asset.
Using bridges and different issuers can also add technical and custody risks. CZ said strong interchangeability between issuers could ease some of these problems. He did not lay out a specific technical standard for how that would work. Making it work would need matching redemption rules, backing methods and legal claims across platforms.