Changpeng Zhao Questions the Potential of Tokenized Gold
Date: 2025-10-24 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Former Binance CEO Changpeng Zhao (CZ) commented on the plans of renowned cryptocurrency critic Peter Schiff to launch a new product based on tokenized gold. According to Zhao, such assets have not gained widespread adoption because their concept is based on trust rather than decentralization.
Peter Schiff discussed his plans in an interview with podcaster Michael Jerome, better known as ThreadGuy. He noted that gold is a benchmark for stability, as it maintains its value over centuries. According to Schiff, the only asset truly worthy of being moved to the blockchain is gold.
Schiff has expressed this position on numerous occasions. For example, in the summer of 2025, he commented on a project by Streamex and BioSig Technologies Inc. aimed at creating a $1.1 billion gold treasury. When asked why he supports gold tokenization but criticizes Bitcoin, Schiff stated that Bitcoin was only a temporary solution devoid of intrinsic value.
Gold tokenization involves dividing gold bars into digital shares, each of which represents a token recorded on the blockchain. Owners of these tokens effectively receive rights to a portion of physical gold, and the assets can be freely traded on the secondary market.
However, Changpeng Zhao questions the feasibility of this approach. He noted that tokenized gold is not "on-chain gold" in the true sense, as it requires trust in the custodian of the metal. "Essentially, you're handing over the gold to a third party and hoping it will be returned in the future, despite possible risks—changes in leadership, economic crises, or even wars." "It's a kind of 'take my word for it' token," he emphasized.
In response, Schiff argued that trust in gold custodians has been around for centuries. He cited the example of Brinks, which has been storing clients' gold for over 160 years and has never lost a single gram. He argued that tokenized gold can be compared to stablecoins, as both models require the asset to be stored with a trusted intermediary. He also questioned whether Zhao was opposing the stablecoin industry as a whole.
Changpeng Zhao had not commented on this statement at the time of publication. Meanwhile, tokenized gold-backed assets already exist on the market, including Paxos's PAXG and Tether's XAUT stablecoins. The latter is backed by more than seven tons of gold stored in Switzerland, and Tether plans to expand its presence in this segment.
