CZ Reveals Real Reason Tokenized Gold Has Not Taken Off

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Changpeng Zhao (CZ), founder and former CEO of Binance, has commented on recent news relating to gold proponent Peter Schiff. Schiff announced plans for a tokenized gold product, but CZ does not buy the idea.

CZ reacts to Peter Schiff’s gold plans

The tokenized gold product announcement by Schiff represents a notable pivot. For years, he has dismissed Bitcoin (BTC), even recently forecasting an imminent price crash.

However, he is now embracing blockchain for gold tokenization to make it more accessible and transferable.

This disclosure has prompted CZ to respond with a pointed critique. CZ did not attack gold itself; rather, he called out a hype mismatch.

He emphasized that although tokenized gold sounds revolutionary, it is often just a digital claim on vaulted metal, reliant on a central custodian.

Saying the obvious. Most people “in crypto” know this, most people “not in crypto” may not understand yet.
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… https://t.co/KMYfz2dG04
— CZ 🔶 BNB (@cz_binance) October 23, 2025

Individuals would not hold the gold “on-chain.” Instead, it is akin to a bank promising to return deposits. The challenge is that if the issuer goes bankrupt, gets hacked or changes hands, then the guarantees fail.

Also, while physical gold endures, promises do not always. CZ raised questions about whether the third party will deliver on their promises years later, amid wars and economic chaos.

He therefore dubbed the proposed product a “trust me bro” token. CZ added that this explains why no tokenized gold has taken off.

This is a debate on the promise of blockchain. While Schiff is selling convenience with a gold twist, CZ is reminding everyone that true innovation does not outsource trust.

Peter Schiff faces more criticism

Meanwhile, Schiff faces criticism within the cryptocurrency market after gold prices plunged to record lows on Wednesday, Oct. 22, 2025.

As revealed in a U.Today report, veteran crypto trader Peter Brant took a playful jab at Schiff. Brandt shared a historical gold chart suggesting that the precious metal has put its investors through a tough investment journey.

According to the data, gold has continued to record deep and long-lasting consolidations. This is despite recording an average annual return of 3.6% over the past 45 years.

Surprisingly, Schiff predicted earlier this month that gold could hit $6,000 by Christmas, outshining Bitcoin and the S&P 500.

In contrast to this prediction, gold experienced a downtrend to below $4,100 on Wednesday, which has fueled recent criticism. Bitcoin, on the other hand, is still facing volatility but also showing signs of recovery.

Over the past 24 hours, the BTC price surged slightly by 1.17% to $109,629.