CZ Says “Tokenize Everything” in Bold Blockchain Push

Binance founder Changpeng Zhao, widely known as CZ, has called for a broader push toward tokenization, arguing that virtually everything could eventually be represented as a blockchain-based asset.

CZ’s comments highlight his support for tokenization across different blockchain networks, while acknowledging one of the biggest challenges facing the sector: fragmented liquidity.

The remarks were highlighted by crypto-focused account @coinbureau on X, adding to growing discussion about how tokenization could reshape financial markets and the broader digital economy.

Rather than advocating for one blockchain to dominate the sector, CZ appears to support a multi-chain approach in which different networks and issuers develop their own tokenized assets.

According to his argument, having multiple participants competing and building at the same time could accelerate the overall growth of tokenization.

CZ Calls for Everything to Be Tokenized

Tokenization refers to the process of representing real-world or digital assets on a blockchain.

These assets can include financial nstruments, real estate, commodities, securities, intellectual property and other forms of value.

Instead of relying entirely on traditional databases and financial infrastructure, tokenized assets can potentially use blockchain technology to record ownership and facilitate transfers.

CZ’s “tokenize everything” message reflects the growing belief that blockchain technology could eventually become part of the infrastructure supporting a much wider range of economic activity.

The concept has already attracted interest from banks, asset managers, technology companies and governments.

However, tokenization remains at an early stage compared with traditional financial markets.

One of the biggest questions is how separate tokenized markets will interact with each other.

Fragmented Liquidity Remains a Major Challenge

CZ acknowledged that a multi-chain tokenization environment could create a fragmented liquidity problem.

If assets are issued across dozens or hundreds of blockchain networks, liquidity could become distributed across different ecosystems.

For investors and users, this could make markets more complicated.

An asset issued on one blockchain might have limited liquidity compared with an identical or similar asset issued somewhere else.

Different networks may also use different standards, wallets and settlement systems.

This fragmentation could make it harder for users to move assets efficiently between ecosystems.

Despite that challenge, CZ argues that having multiple participants building tokenization infrastructure could ultimately be the fastest way to expand the sector.

Why Multiple Blockchains Could Accelerate Tokenization

The blockchain industry has historically developed through competition between different networks.

Bitcoin established decentralized digital money, while Ethereum and other networks expanded the use of smart contracts and decentralized applications.

Today, numerous blockchains compete to provide faster transactions, lower fees, greater scalability and specialized functionality.

CZ’s position suggests that tokenization could follow a similar path.

Rather than waiting for a single network to become the universal standard, multiple companies and blockchain ecosystems can experiment simultaneously.

Some projects may succeed while others may disappear.

The competition could eventually produce better technology and more efficient infrastructure.

This approach could also encourage innovation in areas such as asset issuance, custody, settlement and decentralized finance.

Interchangeability Could Help Solve the Problem

CZ also pointed to greater interchangeability between different issuers as a potential solution to fragmented liquidity.

Interchangeability means that assets or tokenized instruments from different platforms could potentially interact more easily.

If blockchain networks become better connected, users may not need to remain locked into one ecosystem.

Assets could potentially move between compatible networks or be represented across multiple platforms while maintaining clear ownership records.

This could help create deeper and more connected liquidity markets.

Interoperability has therefore become one of the most important areas of development across the blockchain industry.

Developers are working on technologies designed to allow different networks to communicate and transfer information or assets.

For tokenization to reach a global scale, these systems could become increasingly important.

Tokenization Could Transform Financial Markets

The potential impact of tokenization extends well beyond cryptocurrency trading.

Traditional financial markets rely on intermediaries, databases and settlement systems that can make transactions expensive or slow.

Tokenization could potentially simplify some of these processes by placing ownership and transaction records on blockchain networks.

For example, tokenized securities could potentially be traded with faster settlement.

Real estate could potentially be divided into digital ownership units.

Commodities could potentially be represented through blockchain-based tokens.

Even private assets that are difficult to trade today could potentially become more accessible through tokenization.

However, regulatory frameworks will play a major role in determining how quickly these markets develop.

Institutional Interest Is Growing

Major financial institutions have increasingly explored tokenized assets in recent years.

Banks and asset managers have experimented with blockchain-based versions of traditional financial products, including funds, bonds and other instruments.

This suggests that tokenization is moving beyond the crypto industry's original focus.

Instead, it is increasingly being considered as a potential upgrade to existing financial infrastructure.

The transition is unlikely to happen overnight.

Financial institutions must address compliance, custody, investor protection and regulatory requirements before tokenized assets can reach mainstream markets.

Still, the direction of development is becoming increasingly clear.

What Tokenization Means for Crypto

For the cryptocurrency industry, widespread tokenization could significantly expand the use of blockchain technology.

Crypto networks would no longer be used primarily for native digital currencies.

They could also become infrastructure for traditional assets and financial products.

That could potentially increase blockchain transaction activity and create new demand for network services.

It could also bring more users into the crypto ecosystem.

Someone who has never purchased Bitcoin or interacted with decentralized finance could eventually use blockchain technology through a tokenized investment product without even thinking of themselves as a crypto user.

This could represent a major shift in how blockchain technology is adopted.

The Liquidity Problem Cannot Be Ignored

Despite the optimism surrounding tokenization, fragmented liquidity remains a genuine challenge.

If every issuer creates assets on a different blockchain, investors could face a complicated market environment.

Users may need multiple wallets, accounts and applications to access different tokenized markets.

That could create friction and prevent tokenization from reaching its full potential.

Interoperability could therefore become just as important as tokenization itself.

A successful tokenized economy may require standards that allow different assets and networks to communicate efficiently.

Without those standards, the industry could become divided into isolated liquidity pools.

CZ's Vision Points Toward a Multi-Chain Future

CZ’s comments suggest that he does not view fragmentation as a reason to stop tokenization.

Instead, he appears to see competition as part of the process.

Multiple issuers and blockchain networks can continue developing independently while the industry works toward greater interoperability.

Over time, the strongest standards and technologies could become more widely adopted.

This could produce an ecosystem where tokenized assets exist across different blockchains but remain increasingly accessible to users regardless of which network they prefer.

That would represent a more mature version of the multi-chain economy.