Nasdaq CEO Says Tokenizing Collateral Could Unlock Tens of Billions in Frozen Capital

A Bold Case for Blockchain on Wall Street's Biggest Stage

Nasdaq CEO Adena Friedman made a striking argument that tokenization could free tens of billions of dollars tied up as collateral, potentially helping financial markets operate around the clock — delivering her remarks at the TOKEN2049 conference in Singapore on October 8. The comments, coming from the head of one of the world's most powerful stock exchanges, signal that blockchain-based finance has moved well beyond the fringes of Wall Street and into its executive suites.

Tokenizing assets such as Treasurys, equities, and money market funds, along with the flow of money, could make collateral more liquid, Friedman told CNBC at the conference. The core idea is straightforward but consequential: the trapped capital Friedman referenced relates to inefficiencies in current market structure, with assets sitting in custody, awaiting settlement, or locked behind manual processes representing capital that cannot be deployed elsewhere.

What Tokenization Actually Means — and Why It Matters

Tokenization involves representing financial assets, such as stocks and bonds, as digital tokens that can be transferred using blockchain technology. Think of it as converting a paper deed to your house into a digital file that can be instantly shared, verified, and transferred anywhere in the world — except applied to trillion-dollar financial instruments. Proponents argue this can speed up settlement, reduce reconciliation costs, and allow assets to move more freely between markets and custodians.

Friedman said institutional interest in tokenization has grown over the past year, pointing in part to the passage of the Genius Act in the U.S., which established a regulatory framework for stablecoins. That regulatory clarity appears to have given major financial players the confidence to lean in. That growing institutional interest is also converging with demand from retail investors, who have long sought the ability to trade around the clock — a sector Friedman noted has been "about 10 years ahead."

The 24/7 Trading Challenge — and AI's Role

The shift toward markets operating 24 hours a day, seven days a week would require financial institutions to manage risk and collateral continuously — a major departure from the norm, since financial firms have traditionally used periods when markets are closed to update systems and handle risk-management tasks. Friedman was candid about the difficulty: she acknowledged that "the easiest part is the exchange infrastructure." The harder work lies in rebuilding the plumbing behind it.

Artificial intelligence could help support that transition. Nasdaq has launched digital agents within its risk-management platform that initially provide recommendations, and banks could eventually use similar agents to take more direct action, Friedman said — adding that "AI is critical for 24/7." Nasdaq is already taking incremental steps: its first move is targeting December 6 for a 23-hour, five-day equity trading session.

Global Appetite Is Growing Fast

Kraken co-CEO Arjun Sethi, also speaking at the event, said companies outside the United States are exploring tokenization and seeking greater access to American capital markets. Sethi cited an international company generating roughly $25 million in revenue that was actively exploring ways to access capital markets, alongside larger firms evaluating tokenized offerings and U.S. public listings.

Despite the momentum, Friedman cautioned that round-the-clock trading may not apply universally across all asset types, noting that not every asset is liquid enough to support a 24/7 environment. Still, the direction of travel is unmistakable. With a major regulatory framework now in place, AI tools maturing inside exchanges, and institutional giants like JPMorgan, Goldman Sachs, and BlackRock already testing tokenized systems, the DTCC plans to launch a platform this month letting firms tokenize stocks and ETFs — suggesting the era of tokenized finance isn't a distant promise. It's arriving on a schedule.