GSR Market Head: Tokenization Platforms Lack Real Trading Volume; Hype Exceeds Actual Use

Huo Xing Cai Jing reports, according to Cryptonomist, Spencer Hallarn, Market Head at crypto market maker GSR, stated in an interview that the hype around tokenization has outpaced actual usage on many platforms—the issue is not demand for tokenized assets, but rather the design of the platforms themselves. He noted that many walled-garden tokenization platforms with strict KYC requirements generally lack meaningful trading volume, as cumbersome onboarding and compliance processes restrict activity. Hallarn believes the real opportunity lies not in tokenization for tokenization’s sake, but in repairing the underlying infrastructure of traditional banking and settlement systems—the pipelines that transfer funds and assets between institutions—making tokenization more akin to infrastructure repair than merely another crypto narrative. He also noted that the stagnation in this year’s crypto market has largely stemmed from capital shifting toward AI infrastructure, as major tech companies have raised massive sums via equity financing for AI infrastructure, tightening liquidity across all asset classes—including crypto. His clients are increasingly shifting from chasing short-term momentum toward long-term budget planning, OTC hedging, and RWA. If AI investment cools and the Federal Reserve cuts interest rates, liquidity is expected to improve and support Bitcoin’s price.