{"id":14105,"date":"2025-10-23T09:14:16","date_gmt":"2025-10-23T09:14:16","guid":{"rendered":"https:\/\/bitunikey.com\/news\/changpeng-zhao-slams-peter-schiffs-tokenized-gold-plan\/"},"modified":"2025-10-23T09:14:19","modified_gmt":"2025-10-23T09:14:19","slug":"changpeng-zhao-slams-peter-schiffs-tokenized-gold-plan","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/changpeng-zhao-slams-peter-schiffs-tokenized-gold-plan\/","title":{"rendered":"Changpeng Zhao slams Peter Schiff\u2019s \u2018tokenized gold\u2019 plan"},"content":{"rendered":"
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Changpeng Zhao criticizes Peter Schiff\u2019s plan to release a tokenized gold product, arguing that tokenized gold is not the same as on-chain gold.<\/p>\n

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\n Summary<\/span>\n <\/div>\n
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  • Changpeng Zhao emphasized that tokenized gold is merely a digital IOU dependent on third-party custodians, therefore it is not fully on-chain.<\/li>\n
  • As gold\u2019s market cap falls to $28.5 trillion amid a major price drop, Zhao predicted that Bitcoin, which is currently valued at $2.18 trillion, will eventually surpass gold\u2019s market dominance.<\/li>\n<\/ul><\/div>\n<\/div>\n

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    In a recent post on Oct. 23, Changpeng Zhao reminded the community that tokenized gold is not the same as on-chain gold. This means that gold products on-chain are still equivalent to an IOU or a tokenized representation of the real asset. Therefore, it cannot be regarded as \u201cdigital gold\u201d the same way that Bitcoin is.<\/p>\n

    Although tokenized gold does exist on a blockchain, traders would still need to depend on a centralized entity to hold and redeem the real gold backing of those tokens. Therefore, owning tokenized gold does not mean that they hold full ownership of physical gold, instead it is a digital promise that is based on a company\u2019s word.<\/p>\n

    \u201cIt\u2019s tokenizing that you trust some third party will give you gold at some later date, even after their management changes, maybe decades later, during a war, etc,\u201d said Changpeng Zhao in his latest post<\/a>.<\/p>\n

    \u201cIt\u2019s a \u2018trust me bro\u2019 token,\u201d he added.<\/p>\n

    Changpeng Zhao highlights the dependence on third-party custodians as the reason why gold-backed cryptocurrencies have not gained widespread traction. The mechanism of tokenized gold defeats one of crypto\u2019s core principles, which is to eliminate the need for trust in centralized middlemen or vaults.<\/p>\n

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    Saying the obvious. Most people \u201cin crypto\u201d know this, most people \u201cnot in crypto\u201d may not understand yet. <\/p>\n

    Tokenizing gold is NOT \u201con chain\u201d gold. <\/p>\n

    It\u2019s tokenizing that you trust some third party will give you gold at some later date, even after their management changes, maybe\u2026 https:\/\/t.co\/KMYfz2dG04<\/a><\/p>\n

    — CZ \ud83d\udd36 BNB (@cz_binance) October 23, 2025<\/a><\/p><\/blockquote>\n