Changpeng Zhao calls tokenized gold a castle built on sand

Binance founder and former CEO Changpeng Zhao stated on X that tokenized gold is not truly on-chain gold. He described it as the tokenization of a vague belief that a custodian will honor the asset, a promise that cannot be guaranteed if the custodian firm goes bankrupt, its management changes, or a war breaks out. Zhao argued that these inherent counterparty risks are the reason gold-backed coins have failed to achieve mainstream success. His comments were a response to Peter Schiff, CEO of Euro Pacific Capital and a prominent Bitcoin skeptic and gold proponent, who recently announced plans to launch a tokenized gold product. The two had previously engaged in a debate on X earlier this month regarding the outlook for BTC.