Changpeng "CZ" Zhao, the founder and former CEO of Binance, has recently voiced his skepticism regarding tokenized gold, specifically targeting Peter Schiff's new venture in this space. In a statement released on October 23, 2025, CZ described tokenized gold as a "trust me bro" asset, sparking debate about the true nature of on-chain assets and the role of trust in modern finance.
Schiff, a well-known gold proponent and long-time Bitcoin critic, recently unveiled plans to launch a tokenized gold product through his project, Chip Gold. This initiative aims to allow users to buy, sell, and trade gold via a mobile app, combining the stability of gold with the convenience of blockchain technology. Schiff has stated that tokenized gold could achieve what Bitcoin failed to do, acting as a store of value and a medium of exchange, enabling users to "send and spend gold just like money" through debit cards and digital transfers linked to physical reserves.
CZ's critique centers on the idea that tokenized gold isn't truly "on-chain". He argues that it merely represents a promise from a third party or company that the gold exists and can be redeemed later. This reliance on a central custodian, according to CZ, undermines the decentralized principles that underpin cryptocurrencies like Bitcoin. He suggests that users must trust that the third party will honor their promise to deliver the gold, even if management changes or unforeseen circumstances arise.
CZ's statement included, "Tokenizing gold is NOT “on chain” gold. It's tokenizing that you trust some third party will give you gold at some later date, even after their management changes, maybe…". This highlights his concern that the value of tokenized gold is ultimately dependent on the trustworthiness of the issuing entity.
The Binance founder's comments have ignited a lively discussion within the cryptocurrency community. Many agree with CZ's assessment, emphasizing the importance of decentralization and the risks associated with trusting third parties. Others argue that tokenized gold can still offer benefits, such as increased accessibility and ease of trading, even if it doesn't fully embody the principles of decentralization.
The debate also touches upon the broader topic of real-world asset (RWA) tokenization. While tokenizing assets like gold can bring them onto the blockchain and potentially increase their liquidity, it also raises questions about how to ensure their authenticity and prevent fraud. The need for trusted intermediaries to verify and safeguard these assets often clashes with the ideals of a decentralized system.
Despite his skepticism towards tokenized gold, CZ's Binance has simultaneously announced an expansion of fiat deposit and withdrawal options, demonstrating the company's continued commitment to bridging the gap between traditional finance and the crypto world. This move suggests that while CZ may question the decentralization of certain tokenized assets, he recognizes the importance of providing users with access to a wide range of financial services.
The clash between CZ and Schiff highlights the ongoing tension between traditional assets and decentralized finance. As more real-world assets are tokenized, the industry will need to grapple with the challenges of balancing trust, decentralization, and the need for regulatory oversight.
