Animoca’s Yat Siu Says Crypto’s Future Lies in Tokenization and Utility

TLDR

• Yat Siu says crypto over-invested in political outcomes like Trump’s tariffs, leading to underwhelming Bitcoin performance.
• Animoca Brands plans a reverse merger to go public and serve as an altcoin proxy, targeting crypto exposure for investors.
• US regulation, such as the Clarity Act, will prompt companies to adopt tokenization for legal certainty.
• 2026 is expected to be the “year of the utility token,” with crypto products offering real-world value beyond speculation.

As 2025 draws to a close, Animoca Brands’ Yat Siu reflects on the crypto market’s over-reliance on political outcomes, particularly surrounding former President Donald Trump. He warns that this speculative phase must end, with the industry shifting toward a more mature approach. Siu forecasts that 2026 will mark the rise of “utility tokens,” where crypto projects focus on real-world use cases and legal clarity, moving beyond the speculative frenzy.

The Trump Effect on Crypto in 2025

In 2025, the cryptocurrency market found itself grappling with political influences, particularly centered around the US and former President Donald Trump. Yat Siu, co-founder of Animoca Brands, views the year as the “Trump year,” not because the former president supported crypto but because the industry overbet on political outcomes, from tariffs to interest rate cuts. This over-reliance on political events did not play out as expected, leading to disappointing results for Bitcoin and the broader market.

Siu explains that many in the crypto space treated Trump as a key figure who could drive the market higher. However, Trump’s focus on trade wars and tariffs diverted attention away from crypto’s core fundamentals.

“If you’re starting a tariff war, you’re not thinking about what happens to Bitcoin,” Siu remarked. His critique suggests that crypto’s speculative nature, driven by political events, contributed to its underperformance in 2025, with Bitcoin limping into the year’s end with its fourth annual decline in history.

Animoca Brands’ Move Toward Tokenization and Utility

As the crypto market recovers from the speculative frenzy of the last few years, Siu anticipates a shift towards real use cases and tokenization in the coming years. Animoca Brands, a leader in Web3 and gaming investments, is positioning itself to capitalize on this transition. The company is planning a reverse merger with Currenc Group, a Nasdaq-listed fintech firm, aiming to go public and become a liquid altcoin proxy for investors.

The merger will allow Animoca to provide a diversified exposure to the broader crypto market, particularly the long tail of altcoins. Siu notes that while Bitcoin and Ethereum are key players, investors looking to diversify beyond them face challenges. “There’s no vehicle for altcoins like MicroStrategy is for Bitcoin,” Siu explained. By offering public market exposure to altcoins and Web3 projects, Animoca hopes to bridge this gap and offer a liquid, diversified portfolio of tokens for investors.

Regulatory Clarity and the Future of Tokenization

A significant factor that will shape the future of crypto is the regulatory landscape. Siu expects upcoming US legislation, such as the Clarity Act and the GENIUS Act, to provide much-needed legal clarity for crypto projects and token issuers. These regulations are expected to streamline token issuance, trading, and supervision, making it safer for large companies to enter the crypto space.

Once these regulatory frameworks are in place, Siu believes a wave of institutional companies will adopt tokenization. He describes the shift as “Tokenize or die,” emphasizing that established businesses will need to embrace tokens for legal certainty and competitive advantage. This development could lead to a surge in the tokenization of real-world assets, bridging the gap between traditional finance and blockchain-based systems.

The Year of the Utility Token in 2026

Looking ahead to 2026, Siu predicts that the focus will shift away from speculative tokens and toward products that offer real utility. This shift comes after the speculative mania surrounding memecoins, which saw retail investors facing significant losses. Siu notes that during the peak of the memecoin craze, many tokens were launched without clear use cases, relying solely on narrative and hype.

With the crypto market maturing, the next wave of projects will center around solving tangible problems for users. Siu believes that 2026 will be the “year of the utility token,” with new projects focused on providing real value. This could include tokens tied to gaming, digital assets, and other practical applications that appeal to a broader user base beyond just crypto enthusiasts.

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