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CZ, Peter Schiff Agree to Debate as Tokenized Gold Faces Trust Concerns

The dispute centers on whether gold tokens deliver true on-chain ownership versus a custodial IOU.

Overview

  • Peter Schiff announced Tgold and a related neobank platform he says will let users buy vaulted gold, transfer ownership on-chain, redeem for metal, and link holdings to debit cards.
  • Changpeng Zhao argued tokenized gold is not “on-chain” gold, calling it a trust-based claim on third-party custodians rather than direct, self-custodied ownership.
  • Both men agreed on X to hold a public debate comparing Bitcoin and tokenized gold, with timing and format yet to be arranged.
  • Industry analysts echoed custodial and legal-title concerns, citing redemption minimums, KYC gates, issuer admin keys, and past token freezes as key risks.
  • Market data show tokenized gold surpassing $3.7 billion in value, led by Tether Gold and PAX Gold, even as audits note that token transfers settle on public chains while legal title remains off-chain.