Changpeng Zhao discusses asset tokenization and Bitcoin scarcity

Binance founder Changpeng Zhao (CZ) has highlighted the potential for asset tokenization to serve as a significant tool for nations to raise capital and attract foreign direct investment (FDI). He noted that tokenizing stocks and other assets could allow countries to sell them globally, though he cautioned that a multi-chain approach could lead to fragmented liquidity.

While financial infrastructure firms like Clearstream and Euroclear have warned that fragmentation across different distributed ledger networks can trap assets in isolated pools and increase operating costs, Zhao suggested that high interchangeability between issuers could mitigate these issues. He argued that having multiple market participants could ultimately accelerate sector growth.

Separately, Zhao addressed the increasing scarcity of Bitcoin, describing it as a “strictly deflationary asset.” He noted that with a hard cap of 21 million coins and a significant portion of existing supply considered illiquid or lost, the number of available Bitcoins is shrinking relative to the global population of millionaires. He predicted that a single Bitcoin will eventually become too expensive for many millionaires to afford.