Crypto▲ Bullish
CZ Urges Countries to Tokenize Everything for Foreign Investment
CZ says countries can sell tokenized shares to global investors. Under OECD rules, small stakes may count as portfolio flows rather than FDI.
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Binance founder Changpeng Zhao (CZ) said countries can raise capital and attract foreign direct investment by tokenizing assets and selling the digital units to global investors.
"Let's tokenize everything," CZ wrote in an X post Aug. 21. Countries and companies have an incentive to sell tokenized shares to investors worldwide, he argued.
CZ also backed issuing tokenized assets across every blockchain rather than selecting a single network. He acknowledged the approach would fragment liquidity and said parallel development would be the fastest way to expand the sector. His comments were a policy and industry view, not an official initiative from Binance or any government. He did not identify countries preparing tokenized share offerings or give a timeline for their launch.
Tokenization converts ownership rights or economic claims into blockchain-based units. Governments and companies can apply the model to shares, bonds, funds, commodities and property.
A token can broaden distribution by making an asset accessible through digital platforms. Access alone does not bring new investment or legal recognition across borders. Issuers still face securities laws, custody requirements, investor verification, disclosures and ownership rules.
CZ described tokenization as one of the best methods for attracting foreign direct investment. Under the OECD's formal definition, FDI generally involves a foreign investor establishing a lasting interest and owning at least 10% of an enterprise's voting power. Smaller purchases of tokenized shares may instead qualify as portfolio investment. Whether a token sale counts as FDI depends on the investor's residence, voting rights, ownership level and relationship with the issuing company.
Issuing on multiple networks widens distribution, CZ said. It also splits trading activity and capital between separate markets. Liquidity fragmentation can produce different prices and wider spreads for representations of the same asset. Bridges and separate issuers introduce custody and counterparty risks of their own.