Nasdaq CEO Adena Friedman said at TOKEN 2049 in Singapore on Oct. 9 that tokenizing Treasuries, equities, money market funds and capital flows could make collateral more liquid and unlock billions of dollars in trapped capital across the global financial system. She said institutional interest in tokenization has risen sharply over the past year, helped in part by the U.S. GENIUS Act, which established a regulatory framework for stablecoins. In her view, once money can be tokenized, capital flows can be tokenized as well. Friedman also said institutional demand is converging with long-standing retail demand for around-the-clock trading, with the retail ecosystem roughly 10 years ahead. She described a fully 24/7 market as a major operational challenge for finance, noting that exchange infrastructure is the easiest part while continuous risk and collateral management is much harder. Friedman added that AI is essential to that model, and said Nasdaq has already launched digital agents on its risk management platform, initially to provide recommendations and later to support more direct actions by banks. Kraken co-CEO Arjun Sethi said companies outside the U.S. are showing strong interest in tokenization and in accessing U.S. capital markets.
Nasdaq CEO Adena Friedman said at TOKEN 2049 in Singapore on Oct. 9 that tokenizing Treasuries, equities, money market funds and capital flows could make collateral more liquid and unlock billions of dollars in trapped capital across the global financial system.
Friedman said institutional interest in tokenization has grown sharply over the past year, with part of that momentum tied to the U.S. GENIUS Act establishing a regulatory framework for stablecoins. If money can be tokenized, she said, capital flows can be tokenized too.
She also said institutional interest is now converging with retail demand, as retail participants have long pushed for 24/7 trading. According to Friedman, the retail ecosystem is roughly 10 years ahead on that front.
Still, she described the move to a fully 24/7 market as a huge undertaking for the financial industry. The easiest part, she said, is exchange infrastructure. Traditional financial institutions have historically relied on market closures for system updates and risk management, while round-the-clock operations require risk and collateral management to continue without interruption and in real time.
Friedman said AI is critical to 24/7 trading. Nasdaq has already introduced digital agents on its risk management platform, initially to provide recommendations. In the future, banks could use them to take more direct action.
Kraken co-CEO Arjun Sethi added that companies outside the United States are showing strong interest in tokenization and in gaining access to U.S. capital markets. He cited one company with about $25 million in revenue, along with larger international firms.
Friedman also cautioned that not every asset has enough liquidity to support a 24/7 environment.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
