Nasdaq CEO Adena Friedman says tokenization could free tens of billions of dollars tied up as collateral in global markets. She also warned that round-the-clock trading needs real-time risk controls and enough liquidity.
Nasdaq CEO Adena Friedman said tokenization could release tens of billions of dollars currently tied up as collateral in global financial markets. She made the comments in an October 8 interview with CNBC at TOKEN2049 in Singapore.
Why collateral is the target
Friedman's argument centers on collateral, which institutions pledge to support trades and loans. She said that tokenizing Treasury securities, stocks and money market funds, along with the money used to settle transactions, could change how banks manage it.
The figure is her assessment of an opportunity, not funds already released. Friedman also said institutional interest in tokenization grew over the past year, which she linked in part to the passage of the U.S. GENIUS Act.
Nasdaq backs the shift with $100 million
Nasdaq is already building toward tokenized securities. On September 10, it announced that its investment arm had agreed to invest $100 million in Payward, the parent company of Kraken. The companies expect to introduce Nasdaq Equity Tokens during the second quarter of 2027.
The market is also moving. Tokenized stocks have grown 473% this year to a $3.75 billion market cap, according to Token Relations as cited by U.Today. On October 8, Securitize launched tokenized versions of 12 U.S. stocks on Solana, including Apple, Microsoft and Nvidia.
Around-the-clock trading brings new risks
Friedman said retail investors want trading outside traditional hours. U.Today reported that she described the retail ecosystem as about 10 years ahead.
However, she cautioned that a market that never closes demands more than a working matching engine. Banks and brokers would need to monitor positions and manage collateral continuously, and she described artificial intelligence as important to those capabilities.
Liquidity is a second constraint. According to Friedman, "Not every asset is liquid enough to support a 24/7 environment."
Sources: crypto.news, U.Today
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