Tokenized Gold Market Swells to $3.9B, CZ Calls It a 'Trust Me Bro' Asset

The total market capitalization of gold tokens, including XAUT and PAXG, has grown to $3.86 billion, even as physical gold prices stabilize around $4,100 per ounce. However, Binance co-founder Changpeng Zhao (CZ) expressed skepticism, labeling them a "trust me bro" asset. CZ argued that tokenizing gold is not holding actual on-chain gold; rather, it represents a promise that a third party will deliver physical gold later, potentially decades hence under uncertain conditions. This reliance on centralized issuers raises concerns similar to those associated with stablecoins, which have shown vulnerability during market stress, as evidenced by Ethena's USDe plunging during a recent sell-off. CZ suggested this inherent trust issue is why tokenized gold coins have not achieved widespread adoption, noting that the largest token, Tether Gold, has a market cap of only $2.1 billion compared to Tether's USDT stablecoin at $183 billion.

(Source：CoinDesk)