Summary Nasdaq CEO Adena Friedman believes tokenization could unlock billions in collateral by improving asset liquidity and institutional capital transfers globally. Nasdaq is partnering wit
Nasdaq CEO Adena Friedman has revealed that tokenizing financial assets could unlock tens of billions of dollars held as collateral globally. According to Friedman, tokenized Treasury securities, equities, and money market funds could improve liquidity and make collateral transfers more efficient.
Speaking during a CNBC interview at TOKEN2049 in Singapore, she outlined how blockchain technology could transform institutional financial operations. Financial institutions currently hold substantial collateral to support transactions, manage exposure, and meet settlement requirements across different markets.
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Nasdaq is working with Payward, Kraken’s parent company, to develop infrastructure connecting traditional financial markets with blockchain networks.
The partnership centers on an equities transformation gateway linking regulated financial infrastructure with permissionless networks supporting tokenized securities. This system would allow financial assets to circulate across blockchain environments while maintaining connections with established market infrastructure.
Friedman also highlighted growing institutional interest in tokenization, particularly following regulatory developments surrounding digital assets and stablecoins. She identified the GENIUS Act, which established a stablecoin regulatory framework, as an important factor supporting institutional adoption.
Additionally, tokenizing money could help financial institutions manage capital flows more efficiently while supporting broader financial market modernization.
Friedman explained that round-the-clock financial markets would require substantial operational changes beyond upgrading existing exchange trading infrastructure. She identified risk controls, collateral management, and system maintenance as major challenges facing institutions considering uninterrupted trading operations.
These processes would need to function continuously without relying on scheduled market closures for essential updates and adjustments. Nasdaq has introduced artificial intelligence agents within its risk management platform to help institutions address these operational requirements.
Currently, these digital agents provide recommendations, although future developments could enable them to execute certain actions more directly. Friedman emphasized that artificial intelligence would support financial institutions as they develop systems capable of managing uninterrupted trading activities.
She also noted that retail markets have advanced considerably in round-the-clock trading, placing them roughly ten years ahead of institutions. Nasdaq’s strategy combines tokenization, blockchain connectivity, and automated risk management to support more efficient institutional financial operations.
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