Key Notes
- Bitcoin critic Peter Schiff announced plans to launch a tokenized gold product, allowing users to buy and transfer gold digitally.
- Changpeng Zhao stated that tokenized gold often depends on trust in third-party custodians, making them โtrust me broโ tokens.
- Schiff defended the model, arguing that gold has long relied on trusted custodians like Brinks.
Bitcoin
BTC
$109 221
24h volatility:
1.6%
Market cap:
$2.18 T
Vol. 24h:
$72.43 B
critic Peter Schiff is entering the real-world assets (RWA) tokenization space, planning to launch a tokenized gold product.
However, Binance founder Changpeng Zhao (CZ) pointed out that tokenizing gold is not the same as having physical gold on-chain.
Binanceโs Changpeng Zhao on Limitations of Tokenized Gold
During a recent podcast interview, Gold buff Peter Schiff announced plans to launch a tokenized gold product.
Speaking on the development, Schiff said: โYouโll be able to buy gold on an app through your phone, the gold will be stored in a vault and then you will be able to effortlessly transfer ownership of gold to people you know or redeem it for physical gold.โ
Peter Schiff reveals he will be launching a tokenized gold product
“You’ll be able to buy gold on an app through your phone, the gold will be stored in a vault and then you will be able to effortlessly transfer ownership of gold to people you know or redeem it for physical gold” pic.twitter.com/mWCXVKj9v8
โ Tengen (@Crypto_Tengen) October 23, 2025
Binance founder Changpeng Zhao has cautioned investors about the limitations of tokenized gold. He emphasized that such tokens do not represent โon-chainโ ownership of physical gold.
Zhao explained that tokenized gold relies on trust in a third party to deliver the actual asset, potentially decades later, even amid management changes or geopolitical disruptions.
He referred to these as โtrust me broโ tokens, highlighting the inherent counterparty risk.
Saying the obvious. Most people โin cryptoโ know this, most people โnot in cryptoโ may not understand yet.
Tokenizing gold is NOT โon chainโ gold.
Itโs tokenizing that you trust some third party will give you gold at some later date, even after their management changes, maybeโฆ https://t.co/KMYfz2dG04
โ CZ ๐ถ BNB (@cz_binance) October 23, 2025
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The Binance founder noted that this fundamental reliance on trust is why gold-backed tokens have yet to achieve widespread adoption in the crypto market.
CZ recently suggested that Bitcoin could surpass gold in the future, following goldโs market cap reaching $30 trillion.
Responding to CZ, Schiff questioned the reliability of tokenized gold, comparing it to stablecoins and pointing out the long-standing trust in traditional gold storage.
People have trusted third parties to hold their gold for centuries. Brinks has been storing gold for over 160 years and has never lost an ounce. However, tokenized gold is the same custodial concept as stablecoins. Does this mean that you are against that entire industry too?
โ Peter Schiff (@PeterSchiff) October 23, 2025
Gold Liquidity Coming To Bitcoin? Peter Schiff Says No
Following its all-time highs above $4,350 last week, the gold price has corrected over 6.5%.
Economist and gold advocate Peter Schiff has warned that Bitcoin could face a major downturn if goldโs recent volatility is any indication.
Schiff noted that goldโs 6.5% single-day drop amid panic selling highlights how quickly markets can reverse, suggesting Bitcoin could see an even sharper decline.
He added that instead of triggering a rotation from gold into Bitcoin, the correction might prompt investors to exit both assets. Schiff also pointed out the early sell-off taking place in Bitcoin-related stocks.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
