Peter Schiff, a vocal critic of cryptocurrencies like Bitcoin, is venturing into the digital asset space with a new project aimed at bringing the stability of gold to the convenience of blockchain technology. His new venture will enable users to buy, store, and transfer gold through a mobile application, making one of the world’s oldest assets as easy to trade as sending a text message.
“You’ll be able to buy gold on an app through your phone,” Schiff explained. “The gold will be stored in a vault, and then you will be able to effortlessly transfer ownership of gold to people you know or redeem it for physical gold.”
Bringing Gold Into the Digital Age
Tokenized gold is not an entirely new concept, but Schiff’s involvement lends significant credibility to a growing sector that merges tangible real-world assets with the efficiency of digital platforms. In this model, each token represents a fixed amount of gold securely stored in a vault, with ownership meticulously recorded on a blockchain. This system facilitates fractional ownership, allowing users to purchase small quantities of gold, a feat that was previously challenging for many investors.
Recent data from CoinGecko highlights the burgeoning market for tokenized gold, with a total capitalization exceeding $1 billion. Leading products in this space include Tether Gold (XAUT) and Pax Gold (PAXG). These tokens have garnered popularity among investors seeking the inherent reliability of gold combined with the rapid transfer capabilities of digital assets.
Peter Schiff reveals he will be launching a tokenized gold product
“You’ll be able to buy gold on an app through your phone, the gold will be stored in a vault and then you will be able to effortlessly transfer ownership of gold to people you know or redeem it for physical gold” pic.twitter.com/mWCXVKj9v8
— Tengen (@Crypto_Tengen) October 23, 2025
An illustrative example of this model is Pax Gold, where each token corresponds to one ounce of gold held in secure vaults in London. Users have the option to redeem their tokens for physical gold bars or to trade them instantly on digital platforms. Schiff’s forthcoming application appears to adopt a similar approach, augmented by his personal brand, which is associated with trust and transparency.
CZ Warns Tokenized Gold Still Relies on Trust
Binance founder Changpeng Zhao, widely known as CZ, has offered a cautious perspective on Peter Schiff’s impending tokenized gold project. He emphasized the fundamental distinction between assets recorded on-chain and promises held off-chain. CZ clarified that tokenized gold does not involve placing physical gold directly onto the blockchain; instead, it represents a claim to gold that is held by a third-party custodian.
Saying the obvious. Most people “in crypto” know this, most people “not in crypto” may not understand yet.
Tokenizing gold is NOT “on chain” gold.
It’s tokenizing that you trust some third party will give you gold at some later date, even after their management changes, maybe… https://t.co/KMYfz2dG04
— CZ 🔶 BNB (@cz_binance) October 23, 2025
He cautioned that such systems fundamentally depend on trust—specifically, the trust that the custodian will honor redemption requests years into the future, even through changes in management or during periods of global instability. CZ characterized these as “trust me, bro” tokens, noting that this reliance on intermediaries is a primary reason why gold-backed digital tokens have historically struggled to achieve sustained adoption within the cryptocurrency ecosystem.