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

The market capitalization of tokenized gold has reached approximately $3.86 billion, driven by the performance of Tether gold (XAUT) and Paxos gold (PAXG). Binance co-founder Changpeng Zhao (CZ) has expressed skepticism, labeling these tokens as reliant on trust in third parties rather than true ownership of physical gold. He emphasized that acquiring these tokens does not guarantee that the holder can redeem gold in the future, especially under uncertain conditions. This perspective parallels risks associated with stablecoins, which can also break their pegs during market turmoil. As gold prices stabilize around $4,100 per ounce, the appeal of tokenized gold as a hedge continues to grow, despite the potential risks of relying on centralized issuers. CZ characterized these tokens as fundamentally precarious, calling them a 'trust me bro' investment, which reflects broader concerns about their viability compared to stablecoins like USDT, which boasts a market cap of $183 billion.

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