GSR's Andy Baehr argues tokenized short-term fixed-income products can serve as scalable collateral for futures and OTC operations, while warning of structural challenges in crypto lending.
Andy Baehr, head of asset management at GSR, told the Wyoming Blockchain Symposium that tokenized short-term Treasury bonds are the most scalable use of tokenization for institutional operations. The bonds can serve as collateral for futures and over-the-counter derivatives, letting firms put idle cash to work without exiting the market.
"It's not very retail, but it's very scalable," Baehr said. He called tokenized equities exciting. The immediate opportunity, he said, is in fixed income. Baehr noted that 24/7 equity trading on crypto platforms would let investors trade stocks on the same venues they already use for digital assets. He pointed to recent listings like Bybit's addition of Meta and Tesla tokenized shares.
GSR, a market maker and OTC dealer since 2013, has been building its tokenization infrastructure. The firm invested in Libeara in April and acquired both Autonomous and Architech in March. Baehr said those moves position GSR to serve institutions moving into tokenized assets.
Baehr also warned that the crypto lending market faces structural challenges. Liquidity pools are fragmented, and there is no clear benchmark interest rate structure, he said. Those gaps could slow the growth of tokenized credit products.
The Wyoming Blockchain Symposium runs through the week.
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