GSR market head Spencer Hallarn said tokenization hype has outpaced the actual use of many platforms, arguing that the problem is not demand for tokenized assets but platform design. According to ChainCatcher, he said many walled-garden tokenization platforms with strict KYC rules lack meaningful trading volume because heavy onboarding and compliance requirements reduce activity.

Hallarn said the real opportunity lies not in tokenizing for its own sake, but in fixing the underlying plumbing of traditional banking and settlement systems. He said improving infrastructure for moving funds and assets between institutions would make tokenization more of an infrastructure upgrade than a standalone crypto narrative.

He also said this year's crypto market stagnation has been driven largely by capital shifting toward AI infrastructure, as major technology companies raise large amounts through equity financing for AI buildout and tighten liquidity across asset classes. Hallarn said crypto clients are also moving from short-term momentum trading toward long-term budgeting, over-the-counter hedging, and RWA. He added that liquidity could improve and support Bitcoin if AI investment cools and the Federal Reserve cuts rates.