Changpeng Zhao, the founder of Binance, sees tokenization as a practical tool for economic competition, not just a crypto-sector narrative. In comments reported by Wu Blockchain, Zhao said that “all assets should be tokenized” and described on-chain representation of assets as one of the best ways for countries to attract foreign direct investment.
Tokenization turns ownership of real-world assets, from real estate and commodities to equities and treasury instruments, into programmable on-chain records. Zhao’s argument is that investors can move capital into a jurisdiction more easily when assets are represented digitally and settlement paths are open. That framework aligns with Binance’s broader push to make digital asset infrastructure part of mainstream financial markets, a theme already visible in Binance Blockchain Week 2026 Returns to Asia: Bangkok Spotlights the Evolution of Finance.
Tokenization as a foreign direct investment channel
Zhao’s statement frames tokenization not as a single-chain project but as a cross-chain policy option. Foreign direct investment typically involves cross-border payments, legal registration, custody, and ongoing compliance. If an asset is issued as an on-chain token, a government can expose that asset to a broader pool of global investors while keeping the underlying rule set within its own jurisdiction. Tokenized securities and real-world assets can also support fractional ownership, making investments that once required large minimums accessible to smaller institutional participants.
Regulators still need to resolve questions around investor protection, custody, and settlement finality before tokenized investment products can become a standard government strategy. Zhao’s support for tokenization on all blockchains suggests the industry will continue pushing for infrastructure that is neutral across multiple networks rather than concentrated on one ledger.
What to watch for policy and market adoption
The next phase will likely be measured by how quickly countries launch pilot programs for tokenized funds, bonds, or real estate registries. For Binance, the policy and legal environment remains uneven. Even as the company pushes tokenization, disputes around services that interact with Binance, such as RedotPay Vows to ‘Vigorously’ Defend Against $470 Million Binance Lawsuit, show that regulatory friction is still shaping how crypto infrastructure providers operate.
If tokenization becomes a mainstream tool for attracting foreign capital, the difference may come from legal clarity and market infrastructure rather than the underlying blockchain. Countries that combine tokenized asset frameworks with clear custody and enforcement standards could test use cases more quickly than those waiting for a single global rulebook.
