“Trust Me Bro Token”: CZ Criticizes at Peter Schiff’s Tokenized Gold Plans

Peter Schiff’s latest reveal to blend traditional gold investing with blockchain technology hasn’t exactly impressed everyone, especially not former Binance CEO, Changpeng “CZ” Zhao.

After Schiff revealed plans to launch a “tokenized gold” platform through SchiffGold, CZ took to X to call the idea a “trust me bro” token, sparking a debate over the real meaning of “onchain assets.”

CZ calls out “Trust Me Bro” Gold

Schiff, a long-time Bitcoin critic and gold advocate, outlined his vision for a new blockchain-based gold product during an interview with @notthreadguy.

The plan? Let users buy gold through a mobile app, have it stored in vaults, and transfer ownership seamlessly, essentially creating digital gold backed by physical reserves. Schiff argued that this system could outperform Bitcoin, saying, “It will do all the things that Bitcoin promises but can never do.”

CZ, however, wasn’t buying it. In his post, he warned that tokenized gold isn’t truly “onchain gold” but merely a representation of it, dependent on a centralized custodian to honor redemption later.

“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,” CZ wrote. “It’s a ‘trust me bro’ token. This is the reason no ‘gold coins’ have really taken off.”

His comments highlight a long-standing divide between gold traditionalists and crypto advocates: one values tangible assets, the other values decentralization and self-custody.

The debate over custody and trust

CZ’s critique triggered a wave of responses. Some users agreed, arguing that tokenized gold still requires blind trust in intermediaries, something blockchain was meant to eliminate.

Others, however, saw it differently. User @LeonidasNFT compared tokenized gold to stablecoins, which also depend on third parties to maintain backing, questioning whether CZ’s logic applied to much of crypto itself.

Even Schiff chimed in, defending his model by pointing out that gold custodians like Brinks have stored bullion securely “for over 160 years.” He argued that tokenized gold shares the same custodial framework as stablecoins, asking CZ if that means he opposes the entire stablecoin industry too.

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