Spencer Hallarn, head of markets at crypto market maker GSR, told Cryptonomist that tokenization hype has outrun actual usage on many platforms. The problem, he said, is not demand for tokenized assets but the design of the platforms themselves. Many walled-garden platforms with strict KYC requirements show little meaningful trading volume; heavy onboarding and compliance steps constrain activity. Hallarn argues that the real opportunity is not tokenization for tokenization's sake, but repairing the underlying rails of traditional banking and settlement — the infrastructure for moving funds and assets between institutions. That would make tokenization an infrastructure fix rather than a crypto-native narrative. He also said this year's crypto market stall largely stems from capital rotating into artificial intelligence infrastructure. Big tech firms have raised massive sums through equity financing for AI buildouts, squeezing liquidity across asset classes, and crypto is no exception. GSR clients are shifting from short-term momentum chasing toward long-term budget planning, OTC hedging and RWA. If AI investment cools and the Federal Reserve cuts rates, liquidity could improve and support Bitcoin's price.
Spencer Hallarn, head of markets at crypto market maker GSR, told Cryptonomist that tokenization hype has outrun actual usage on many platforms. The issue, he said, is not a lack of demand for tokenized assets, but the design of the platforms themselves.
Hallarn noted that many walled-garden tokenization platforms with strict KYC requirements generally lack meaningful trading volume. Burdensome onboarding and compliance processes limit activity. The real opportunity, in his view, is not tokenization for its own sake, but repairing the underlying rails of traditional banking and settlement systems — the infrastructure through which institutions move money and assets. That, he said, would make tokenization closer to an infrastructure fix than a standalone crypto product narrative.
He also attributed much of this year's crypto market stagnation to capital rotating into artificial intelligence infrastructure. Large tech companies have raised substantial funds through equity financing for AI buildouts, tightening liquidity across asset classes, crypto included. His clients, he said, are also shifting from chasing short-term momentum toward longer-term budget planning, OTC hedging and real-world assets (RWA).
If AI investment cools and the Federal Reserve cuts interest rates, liquidity could improve and support the price of Bitcoin, Hallarn added.
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