Adena Friedman, chief executive officer of Nasdaq, stated at the TOKEN2049 conference in Singapore that the tokenization of financial assets has the potential to free up tens of billions of dollars in capital currently tied up as collateral across the global financial system.
In an interview with CNBC, Friedman explained that converting instruments such as equities, Treasurys, and money market funds into digital tokens would make collateral significantly more fluid. “If we can tokenize money, then we can tokenize the flow of capital,” she said, noting that institutional interest in this technology has increased markedly over the past year.
Friedman pointed to the passage of the Genius Act in the United States, which established a regulatory framework for stablecoins, as a key driver of this momentum.
The integration of tokenization also aligns with growing retail demand for continuous trading. Friedman observed that the retail crypto ecosystem has been ahead of traditional finance by approximately a decade regarding round-the-clock access. However, she acknowledged that transitioning to a 24/7 market requires substantial infrastructure changes. While exchange technology is relatively straightforward to adapt, financial institutions would need to shift risk and collateral management processes from periodic updates to real-time, continuous monitoring.
To support this shift, Nasdaq has introduced digital agents within its risk management platform. Initially designed to provide recommendations, these artificial intelligence tools are expected to eventually take on more direct operational roles. “AI is critical for 24/7,” Friedman emphasized.
Arjun Sethi, co-CEO of cryptocurrency exchange Kraken, told CNBC that companies outside the U.S. are increasingly exploring tokenization as a pathway to access American capital markets. He cited examples ranging from smaller firms generating substantial revenue to larger international corporations seeking U.S. public listings.
Despite the optimism surrounding greater connectivity, Friedman cautioned that not every asset class is liquid enough to sustain a continuous trading environment. Nevertheless, she expressed confidence that these technological advancements will broaden investor access to previously unavailable asset classes.
Nasdaq jumping into AI agents is a clear signal that manual risk management can’t keep up with this speed.
I still think most traditional assets aren’t liquid enough for true 24/7 trading. Let’s see what happens when volatility hits.
Interesting how Kraken sees tokenization as a backdoor for international firms to access US capital. Smart play.
Tens of billions unlocked sounds great, but does stablecoin regulation actually ensure safety or just compliance?
Finally, someone in charge admits we need AI for 24/7 markets. The infrastructure shift is the real hurdle here.