Tokenization demand is not the main problem holding the sector back, GSR market head Spencer Hallarn said in an interview reported by Cryptonomist, arguing that many tokenized-asset platforms are poorly designed rather than lacking investor interest. He said walled-garden venues with strict KYC (identity verification) requirements and cumbersome compliance checks often fail to generate meaningful trading volume because access barriers suppress activity. Hallarn said the bigger opportunity is not issuing tokens for its own sake, but rebuilding the underlying plumbing of traditional banking and settlement systems used to move money and assets between institutions, which would make tokenization more of an infrastructure fix than a standalone crypto narrative. He also said this year's stagnation in crypto markets largely reflects capital being diverted into AI infrastructure, as large technology companies raise huge sums through equity financing for AI buildouts, tightening liquidity across asset classes. In that environment, he said clients are shifting from chasing short-term momentum toward longer-term budget planning, over-the-counter hedging and RWA (real-world assets represented as tokens). If AI investment cools and the Federal Reserve cuts rates, he said liquidity could improve and support Bitcoin prices.