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🔥BULLISH

CZ Backs Tokenization Despite Fragmented Liquidity

The trade-off makes interoperability and liquidity aggregation central to whether a multichain market for real-world assets can scale.

Changpeng Zhao, known as CZ, said, “I support tokenization on all blockchains,” arguing that a multichain approach is the fastest way to grow the sector. He acknowledged that spreading activity across networks creates a fragmented liquidity problem, while multiple players continue pushing tokenization forward.

Why it matters

Tokenization brings real-world assets into blockchain-based markets, but wider participation can divide buyers, sellers and liquidity across chains. CZ’s view puts adoption first, with fragmentation framed as a problem the market must solve.

For investors, that makes interoperability and liquidity aggregation central infrastructure themes. The value of a tokenized market depends not only on what gets issued, but also on how easily participants can find usable depth across networks.

Market impact

The signal points to a multichain adoption push, with fragmented liquidity as the main execution constraint. The balance between broader distribution and usable liquidity will shape whether RWA tokenization becomes a connected market or a collection of isolated pools.

Frequently asked questions

  1. Why does CZ support tokenization across all blockchains?

    CZ argues that supporting tokenization on all blockchains is the fastest way to grow the sector.

  2. How can multichain tokenization fragment liquidity?

    Spreading activity across networks can divide tokenized assets, buyers, sellers and liquidity among separate chains.

  3. Which infrastructure areas matter most for multichain RWAs?

    Interoperability and liquidity aggregation are central infrastructure themes for helping participants find usable depth across networks.

  4. Why does wider participation create a coordination problem?

    Wider participation can split buyers, sellers and liquidity across chains, creating the coordination problem CZ acknowledges.

  5. What will determine whether RWA markets become connected across chains?

    The balance between broader distribution and usable liquidity will shape whether RWA tokenization becomes a connected market or a collection of isolated pools.

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Aggregated from CoinTelegraph · Verified · Last refreshed 2h ago
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