Nasdaq CEO: Tokenize Assets for Fluid Collateral

Tokenization of financial assets and capital flows could free up tens of billions of dollars globally by increasing collateral liquidity, according to Nasdaq CEO Adena Friedman. She explained at TOKEN2049 in Singapore that representing assets such as Treasurys and equities as digital tokens on a blockchain enhances fluidity.

Friedman highlighted growing institutional interest, partly due to the U.S. Genius Act establishing stablecoin regulations. This trend aligns with retail demand for round-the-clock trading. Achieving a 24/7 market environment presents significant infrastructure challenges, particularly in continuous risk and collateral management.

Artificial intelligence is identified as critical for enabling 24/7 operations, with Nasdaq already deploying AI agents for risk management recommendations. These agents could evolve to take more direct actions, assisting institutions in managing real-time financial flows.

Beyond U.S. markets, international companies are exploring tokenization to gain greater access to American capital markets, as noted by Kraken co-CEO Arjun Sethi. However, Friedman cautioned that not all assets are suitable for continuous trading, but increased global connectivity could expand investor access to new asset classes.