Peter Schiff enters the tokenization gold track, criticized by CZ: not true "on-chain gold".

With the recent surge in gold prices, Tokenized Gold has received unprecedented attention, but there are significant differences of opinion among industry experts regarding its nature and risks. Notable Bitcoin critic and economist Peter Schiff announced plans to launch his tokenized gold product Tgold, predicting that it will take market share away from Bitcoin. However, CZ quickly responded, criticizing Tokenized Gold as not being true “on-chain gold,” but rather a “trust me bro” token that relies on third-party trust, pointing out its potential custody risks and historical drawbacks. Despite the controversy, the total market capitalization of the tokenized gold market has surpassed $3.8 billion, highlighting the strong development of the tokenization trend of real-world assets (RWA).

The Turn of Gold Bulls: Peter Schiff Announces Entry into Tokenized Gold RWA Track

The latest move by Peter Schiff, a long-time staunch critic of Bitcoin, adds a significant twist to the increasingly heated narrative of real-world asset (RWA) tokenization.

· Schiff's platform plan: Economist Peter Schiff revealed in a live broadcast that he is building a blockchain platform focused on tokenization of gold and a new type of bank (neobank). The token has previously been named Tgold.

· The prophecy challenging Bitcoin: Schiff predicts that tokenized gold will ultimately take market share from Bitcoin. He stated, “I have always said that tokenized gold is the ultimate destination for blockchain and cryptocurrency. Tokenizing real assets to increase liquidity and portability will add value. Tokenizing worthless digital strings does not.”

· Background on gold prices: Schiff's move comes as gold prices have risen for three consecutive years, previously reaching a historical high of 4,380 dollars in October, followed by a correction to around 4,100 dollars.

· Reaction from crypto investors: Despite Schiff's long-standing opposition to Bitcoin, some crypto investors still welcome this move, considering it a strong bullish case for RWA tokenization.

CZ's Sharp Critique: Tokenization of Gold is a “Trust Me, Bro” Lie

CZ has sharply criticized the concept of tokenization of gold, directly pointing to the core issues of trust and custody risks.

· Not real on-chain gold: CZ emphasized in a post on platform X that tokenized gold is not true “on-chain gold”. It merely represents a promise that “you believe a third party will give you gold at some future date (even during management changes, wars, etc.).”

· “trust me bro” Token: CZ described tokenized gold as the “trust me bro” token and explained why “gold coin” never really became popular.

· Financial analysts share a consensus: Financial analyst Shanaka Anslem Perera agrees with CZ's viewpoint, calling tokenization of gold a “huge accomplice lie,” and believes it is a “20th-century product dressed in 21st-century technology.”

· Historical Risk Warning: Perera cited historical events, such as the gold confiscation in 1933, the closing of the gold window in 1971, and the delivery failure of the LBMA in 2023, to illustrate the risks associated with third-party storage and management.

Industry Trends: Bitwise Emphasizes RWA Tokenization as a Core Narrative

Despite the fierce controversy among industry leaders, the market data for tokenization of real-world assets (RWA) and reports from major investment firms indicate that this sector is experiencing strong expansion.

· Bitwise's optimistic outlook: Bitwise Investments remains optimistic about RWA tokenization. Its latest Q3 market report emphasizes that tokenized assets have reached new heights and are becoming the “cousins” of stablecoins, providing global liquidity and 24/7 trading potential.

· The new story of cryptocurrency: Bitwise Chief Investment Officer Matt Hougan stated, “For the past fifteen years, cryptocurrency technology has largely been synonymous with Bitcoin. This is changing. The third quarter of 2025 will be seen as the quarter when cryptocurrency technology firmly gained a second story, with 'stablecoins and tokenization' ranking alongside 'digital gold' as a key narrative for cryptocurrency technology.”

· The scale of tokenized gold: Data from the RWA sector shows that tokenized gold is growing rapidly. Tether Gold (XAUT) and PAX Gold (PAXG) led this category in Q3, with market capitalizations exceeding $1.5 billion and $1.3 billion, respectively.

· Market expansion continues: Despite controversies in the industry, the tokenization of gold continues to expand, with a current market capitalization exceeding 3.8 billion dollars.

Conclusion

Tokenization of gold is a complex product intertwined with technological innovation and traditional financial risks. Peter Schiff's high-profile entry and CZ's severe criticism of its custodial risks have pushed the controversy surrounding the tokenization of real-world assets (RWA) to a climax. Tokenized gold offers investors greater liquidity, but it fundamentally remains an issue involving third-party trust and centralized risks. However, market data indicates that the momentum of the RWA trend is irreversible. Investors must clearly recognize that when participating in RWA products like tokenized gold, the custodial structure of the assets behind the tokens and the credit risk of the issuers determine the “real” level of their value.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.