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Bitcoin critic and long-time gold advocate Peter Schiff is taking an unexpected step into blockchain technology. Schiff, best known for his skepticism toward Bitcoin, has revealed that his company, Schiff Gold, is developing a blockchain-based application that will allow users to buy, hold, and transfer tokenized gold.
The move marks a surprising shift for Schiff, who has spent years dismissing digital currencies as speculative assets. Now, he is embracing blockchain technology to promote what he considers a “real” store of value—physical gold.
Schiff’s Plan to Bring Gold Onchain
In a recent interview with crypto influencer Michael Jerome, known online as “Threadguy,” Schiff said the upcoming app will enable users to purchase vaulted gold, tokenize ownership, and transfer it instantly for payments or redemptions. The product aims to merge gold’s traditional value with blockchain’s efficiency, allowing users to access and spend fractional amounts directly from their phones.
“You’ll be able to carry all your gold around in your phone,” Schiff said during the discussion. He explained that users could spend small amounts through a debit card or redeem their tokens for physical coins. According to Schiff, gold is “the one thing that actually makes sense to put on a blockchain,” as it offers a tangible, time-tested asset represented digitally.
Schiff described the system as a “bridge” between physical wealth and the digital economy—an alternative for those who distrust purely digital assets like Bitcoin but still want to enjoy blockchain’s benefits.
CZ Responds: “It’s a Trust-Me-Bro Token”
The idea quickly drew reactions across the crypto community. Binance founder Changpeng “CZ” Zhao, who recently made headlines after receiving a presidential pardon from Donald Trump, responded to Schiff’s claims with skepticism.
Zhao took to X (formerly Twitter), arguing that tokenized gold is not truly decentralized or “onchain” in the same sense as cryptocurrencies like Bitcoin. Instead, he described it as a product that still depends on third-party custodians and centralized trust.
“It’s tokenizing that you trust some third party will give you gold later,” Zhao wrote. “It’s a ‘trust-me-bro’ token.”
Schiff pushed back, asserting that intermediaries have always played a role in global markets. “Counterparties are part of capitalism,” he said, pointing to established custodians such as Brinks that have long provided secure vaulting and metal verification services. In Schiff’s view, the reliance on custodians does not diminish the concept’s legitimacy—it merely reflects how gold has always been handled in the financial world.
Tokenized Gold Gains Traction
While the debate between purists like CZ and traditionalists like Schiff continues, tokenized gold assets are quietly gaining ground. According to data from The Block, the total market capitalization of gold-backed tokens has reached a record $4.03 billion.
Leading players in the space include Tether Gold (XAUT) and PAX Gold (PAXG), which have become increasingly popular among investors seeking a digital representation of gold without the volatility of cryptocurrencies. The surge comes as physical gold itself recently hit an all-time high of $4,360 per troy ounce before settling around $4,160.
Analysts say that Schiff’s timing aligns with renewed interest in real-world asset (RWA) tokenization, a trend that has seen traditional commodities, real estate, and bonds move onto blockchain networks. With gold prices at historic levels, a growing number of investors are looking for ways to combine the security of hard assets with the convenience of digital systems.
Industry Analysts Weigh In
Bloomberg Intelligence analyst Eric Balchunas commented on the similarities between Schiff’s idea and existing products in traditional finance. “Congratulations, you just invented an ETF,” Balchunas said, referencing established gold-backed exchange-traded funds like AAAU and OUNZ that already allow redemption for physical metal.
He added that while the concept isn’t entirely new, the use of blockchain could simplify transactions and increase accessibility. “The average investor doesn’t necessarily want to take delivery of gold,” Balchunas noted. “They just want liquidity and an easy way to redeem for cash when needed.”
This perspective underscores the broader question facing Schiff’s project—whether blockchain technology genuinely enhances gold ownership or merely digitizes a system that already exists in financial markets.
A Bridge Between Old and New
Despite the criticism, Schiff’s pivot reflects a larger evolution in how traditional investors are approaching digital innovation. While he continues to reject Bitcoin as a speculative bubble, Schiff appears to recognize the growing importance of blockchain as a settlement and record-keeping technology.
By tokenizing gold, Schiff hopes to appeal to both crypto-skeptics and blockchain adopters who want a stable, asset-backed alternative in the digital economy. The app’s success, however, will depend on its ability to establish trust, regulatory compliance, and user adoption in an increasingly competitive landscape.
The project also highlights the broader tension within the digital asset space: the clash between decentralization and custodial security. For Bitcoin supporters like CZ, true digital value comes from a system without intermediaries. For Schiff, intermediaries represent reliability and transparency within an established market framework.
The Growing RWA Movement
Schiff’s gold tokenization plan comes amid rising global attention on real-world asset tokenization. According to a recent report from Boston Consulting Group, the tokenization of tangible assets could become a multi-trillion-dollar industry by 2030, reshaping how wealth is stored and transferred worldwide.
Gold-backed tokens, in particular, have found traction among institutional investors seeking regulated exposure to commodities without dealing with physical storage. As central banks continue to increase their gold reserves and inflation remains a concern, tokenized gold offers a convenient hedge that merges stability with digital accessibility.
Conclusion
Peter Schiff’s entry into blockchain signals a notable moment in the intersection of traditional finance and digital innovation. While he remains a vocal critic of Bitcoin, his decision to tokenize gold shows a pragmatic acceptance of blockchain’s potential to modernize long-established markets.
Whether Schiff’s app becomes a success or not, it underscores a growing trend: the convergence of physical and digital assets in a world seeking both security and efficiency. As gold-backed tokens approach record market valuations, the line between old-world wealth and new-world technology continues to blur—proving that even the staunchest crypto skeptics can’t ignore blockchain’s reach.
