Binance Founder Destroys Schiff’s Gold Token: ‘It’s Not Blockchain, It’s Trust!

 

CZ Slams Peter Schiff’s Tokenized Gold: “Just Another Trust-Me-Bro Token?”Team

A new debate has ignited within the cryptocurrency and finance communities after Binance founder Changpeng Zhao (CZ) publicly criticized Peter Schiff’s latest venture — a tokenized gold platform that promises to bring physical gold ownership into the digital world.

While Schiff promotes his idea as the perfect blend of real-world assets and blockchain technology, CZ has called it out as nothing more than a “trust-me-bro” token — a jab that encapsulates the ongoing philosophical divide between hard-asset traditionalists and crypto-native decentralization advocates.

CZ Calls Out Schiff’s Tokenized Gold

In a post shared to his official X (formerly Twitter) account, CZ questioned the legitimacy of Schiff’s tokenized gold, suggesting that the system fails to achieve the fundamental promise of blockchain: trustless ownership.

“It’s 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.,” Zhao wrote.

His remarks struck a chord with crypto enthusiasts who view centralized asset-backed tokens as contradictory to the decentralized ethos. CZ added that this kind of model defeats the entire point of blockchain because users still have to trust a custodian — in this case, the entity holding the physical gold.

“Most people in crypto know this,” he continued, “but most people not in crypto may not understand yet.”

With that comment, Zhao subtly implied that Schiff — a longtime Bitcoin critic — may not grasp the core principles of decentralized digital assets.

Peter Schiff’s Tokenized Gold Vision

Peter Schiff, the renowned economist, gold advocate, and vocal crypto skeptic, recently revealed his plans to launch a tokenized gold platform alongside a new neobank. In an interview earlier this month, Schiff described a future where users can seamlessly buy, hold, and trade tokenized gold directly from their smartphones.

“You’ll be able to buy gold on an app through your phone. It will be stored in a vault, and you will be able to effortlessly transfer ownership to people you know or redeem it for physical gold,” Schiff explained.

According to Schiff, his platform aims to restore monetary stability by giving users a digital asset backed by something tangible and universally valuable — gold. He believes that using gold-backed tokens for daily payments could offer an alternative to both volatile cryptocurrencies and inflation-prone fiat currencies.

He went on to emphasize,

“I’ve always said that tokenized gold is where blockchain and crypto would ultimately end up. Tokenizing real assets to increase liquidity and portability adds value. Tokenizing worthless strings of numbers does not.”

The platform, he said, will allow gold to be used as a payment medium, with users able to make purchases using debit cards linked to their gold holdings. When a transaction occurs, the system automatically sells a portion of the user’s gold to complete the payment in fiat — bringing real-world utility to precious metals.

The Irony: Schiff’s Complicated Relationship with Crypto

Schiff’s relationship with cryptocurrency has long been contradictory. For years, he has mocked Bitcoin as a “bubble” and a “Ponzi scheme.” Yet, in recent interviews, Schiff has admitted to regretting not investing in Bitcoin when he first heard about it.

“In hindsight, that’s what I should have done,” he confessed. “If I had bought Bitcoin when I first heard about it, I would have had the best investment of my career.”

However, despite this acknowledgment, Schiff maintains that most Bitcoin investors will eventually lose money, arguing that its value is based on speculation rather than intrinsic worth.

This irony has not gone unnoticed by the crypto community, which sees Schiff’s sudden embrace of blockchain — albeit for gold — as a partial concession to the very technology he once dismissed.

Why CZ’s Comments Matter

CZ’s criticism goes beyond just a personal feud. It reflects a philosophical clash that has long divided traditional finance and decentralized crypto systems.

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

For CZ, true innovation lies in removing intermediaries entirely. Tokenized gold, no matter how sophisticated, still depends on a central vault and management team. If that trust breaks — due to fraud, mismanagement, or geopolitical instability — investors could lose access to their supposed “on-chain” assets.

In contrast, cryptocurrencies like Bitcoin and Ethereum rely on mathematical consensus, not third-party custodians. The blockchain itself guarantees ownership and transfer without requiring trust in any human institution.

Trust vs. Verification: The Core Debate

The controversy also reignites the age-old debate: should money be trust-based or trustless?

Supporters of tokenized gold argue that physical assets provide intrinsic value, ensuring that tokens are backed by something real. Critics counter that this reliance on custodianship exposes users to the same vulnerabilities that cryptocurrencies were designed to eliminate.

Crypto analyst and educator Marcus Lin told Hoka News,

“CZ’s comment might sound harsh, but it’s accurate. Once you introduce human control — vault operators, auditors, banks — you’re no longer decentralized. You’re digitizing trust, not eliminating it.”

This viewpoint resonates with many in the crypto sector who see Schiff’s project as a step backward, combining the inefficiencies of traditional banking with the surface-level optics of blockchain.

The Rise of Real-World Asset (RWA) Tokenization

Despite CZ’s critique, the tokenization of real-world assets (RWAs) — such as gold, real estate, and treasury bonds — is one of the fastest-growing sectors in blockchain today. According to a recent report by Boston Consulting Group, RWA tokenization could represent a $16 trillion market by 2030.

Platforms like Ondo Finance, Maple Finance, and Centrifuge are already bridging traditional financial instruments with blockchain systems, allowing investors to gain fractional exposure to real-world assets without intermediaries.

The challenge, however, lies in maintaining transparency and auditability — ensuring that the real-world assets truly exist, are properly stored, and remain redeemable. Schiff’s tokenized gold venture falls squarely into this emerging yet controversial category.

Market Reactions and Community Buzz

Following CZ’s post, the debate spread rapidly across social media. Some users sided with Schiff, praising him for at least embracing blockchain technology, even if selectively. Others echoed CZ’s stance, accusing Schiff of missing the essence of decentralization.

On X, one user commented:

“Schiff finally steps into crypto — but still can’t let go of old-world trust systems. CZ is right; it’s not blockchain if you still need to trust a vault.”

Another user argued:

“At least Schiff is tokenizing something real. Most projects today are vaporware pretending to be innovation.”

The mixed reactions highlight a broader trend — the convergence of traditional and digital finance, with industry leaders debating how much “trust” is acceptable in a decentralized world.

What’s Next for Tokenized Gold?

Despite criticism, Schiff’s project is expected to move forward, with early beta access reportedly launching in late 2025. Analysts predict the platform could attract both gold investors and conservative traders who remain skeptical of volatile cryptocurrencies.

Still, questions remain about regulatory compliance, vault transparency, and redemption guarantees. As history has shown, even well-intentioned tokenization projects can collapse under the weight of mistrust or technical mismanagement.

CZ, for his part, appears unlikely to change his stance. His comments are a reminder that blockchain’s greatest innovation is not digitization — it’s decentralization.

As this ideological battle continues, the crypto space may soon face a defining question: Do investors prefer trust — or freedom from it?

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.