Attendees on the Token2049 convention in Singapore, on Thursday, Oct. 8, 2026. The crypto convention runs via at this time. Photographer: Ore Huiying/Bloomberg through Getty Photographs
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Tokenization may liberate tens of billions of {dollars} in capital tied up in property used as collateral throughout the worldwide monetary system, Nasdaq CEO Adena Friedman mentioned.
Tokenizing property akin to Treasurys, equities and cash market funds, together with the movement of cash, may make collateral extra liquid, Friedman informed CNBC’s Joanna Ossinger on the TOKEN2049 convention in Singapore.
“If you happen to tokenize all these devices together with the movement of cash, then the collateral turns into very fluid,” Friedman mentioned.
Tokenization includes representing monetary property, akin to shares and bonds, as digital tokens that may be transferred utilizing blockchain know-how.
Friedman mentioned institutional curiosity in tokenization has grown over the previous yr, pointing partly to the passage of the Genius Act within the U.S., which established a regulatory framework for stablecoins.
“If we are able to tokenize cash, then we are able to tokenize the movement of capital,” she mentioned.
That rising institutional curiosity is converging with demand from retail traders, who’ve lengthy sought the flexibility to commerce across the clock, in line with Friedman. The retail ecosystem “has been about 10 years forward,” she mentioned.
The push towards 24/7 buying and selling
Transferring to a totally 24/7 market can be a serious endeavor for the monetary business, Friedman mentioned.
“The simplest half is the trade infrastructure,” she mentioned.
Friedman mentioned that monetary establishments have historically had durations when markets are closed to replace techniques and handle threat. However working across the clock would require these processes, together with threat and collateral administration, to happen constantly.
“All the pieces must be actual time on a regular basis,” she mentioned.
Synthetic intelligence may assist monetary establishments handle that transition. Nasdaq has launched a collection of digital brokers inside its threat administration platform that originally present suggestions, Friedman mentioned.
Over time, banks may use these brokers to take extra direct motion, she added.
“AI is vital for twenty-four/7,” Friedman mentioned.
Bridging crypto and conventional finance
Corporations outdoors the U.S. are displaying curiosity in tokenization and entry to American capital markets, Arjun Sethi, co-CEO of cryptocurrency trade Kraken, informed CNBC.
Sethi pointed to an organization producing roughly $25 million in income that was exploring methods to entry capital markets, in addition to bigger worldwide firms concerned with tokenization and U.S. public listings.
He mentioned tokenization may assist increase entry to capital markets for firms world wide.
Nevertheless, round the clock buying and selling might not be appropriate for all the pieces, in line with Friedman.
“Not each asset is liquid sufficient to help a 24/7 atmosphere,” she mentioned.
Nonetheless, better connectivity throughout the worldwide monetary system may additionally open up entry to asset lessons that had been beforehand out of attain for some traders, Friedman mentioned.
