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

ChainCatcher report, according to Cryptonomist, Spencer Hallarn, Market Head at crypto market maker GSR, said 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 tokenizing for the sake of tokenization, but in fixing the underlying infrastructure of traditional banking and settlement systems—the pipelines that move funds and assets between institutions—making tokenization more about infrastructure repair than merely a crypto narrative. He also stated that the crypto market’s stagnation this year largely stems from capital shifting toward AI infrastructure, as major tech companies raise massive funding through 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 prices.