Debate Intensifies Over Tokenized Gold's Blockchain Integration
Darius Baruo Oct 24, 2025 05:58
Binance's CZ challenges the legitimacy of tokenized gold, igniting a debate over its blockchain status and reliance on third-party custody.
A debate has sparked within the crypto community as Binance's founder, Changpeng 'CZ' Zhao, questions the authenticity of tokenized gold as a truly 'on-chain' asset. This controversy arises amid plans by gold advocate Peter Schiff to launch a blockchain-based tokenized gold platform, according to Cryptonews.
The Gold Debate Goes On-Chain: CZ and Peter Schiff Clash Over Blockchain’s “Real Value”
Schiff has proposed a system where users can purchase gold through an app, store it in vaults, and transfer ownership digitally or redeem it for physical gold. He advocates for tokenized gold as a medium of exchange, unit of account, and store of value. However, CZ has criticized this model, arguing that it relies on trust in third-party custodians, labeling it a 'trust me bro' asset.
CZ’s critique comes as tokenized gold markets reach new heights, with gold-backed digital assets crossing the $3 billion mark in market capitalization. Despite the rising interest, CZ's comments highlight concerns about the decentralization and authenticity of these assets.
Are Tokenized Gold Really Not Fully Decentralized?
Tokenized gold allows holders to own digital representations of physical gold, with the underlying asset stored off-chain in centralized vaults. While blockchain technology records ownership, the system relies on third-party custodians to verify and safeguard reserves, which raises questions about the decentralization of these assets.
For tokenized gold to be truly on-chain, both representation and ownership settlement would need to occur without intermediaries—a challenge given the physical nature of gold. Currently, even the most transparent issuers operate within traditional financial frameworks involving regulated vaults and audits.
Over 150,000 Holders Now Own Tokenized Gold as Sector Activity Hits Record Levels
The tokenized gold sector continues to expand, with over 150,000 holders and more than 20,000 active addresses interacting with gold-backed tokens recently. Monthly transfer volumes have surged, indicating growing retail and institutional participation.
Major players are reinforcing this trend. Tether and Antalpha recently raised $200 million for a digital asset treasury centered on Tether Gold (XAUT), aiming to enhance liquidity and visibility in the real-world asset market.
As gold prices rally in traditional markets, driven by economic uncertainties and investor demand for safe assets, tokenized gold gains traction as a digital bridge to traditional assets. Despite price corrections, gold remains a significant focus for investors seeking stability.
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