Nasdaq CEO Adena Friedman says blockchain tokenization could free up tens of billions of dollars currently tied up as collateral in global financial markets. She believes turning traditional financial assets into digital tokens could help banks and other institutions move money and assets more efficiently while opening the door to trading around the clock.
Friedman discussed the opportunity during an October 8 interview at TOKEN2049 in Singapore. She highlighted U.S. Treasury securities, stocks and money market funds as assets that could benefit from tokenization.
She also said tokenizing the assets and the money used to settle transactions could make collateral easier to transfer between financial institutions. However, the estimate represents a potential opportunity, not money that has already been released.
Summary
- Nasdaq CEO Adena Friedman believes tokenization could unlock billions of dollars tied up in financial collateral.
- Treasury securities, stocks and money market funds are among the assets that could be represented on blockchain networks.
- Nasdaq agreed to invest $100 million in Kraken parent Payward as the companies develop market infrastructure.
- Securitize launched tokenized versions of 12 U.S. stocks on Solana in October for eligible investors.
- Around-the-clock trading will require continuous risk management, reliable settlement systems and enough liquidity.
Nasdaq CEO sees billions in tokenized financial assets
Financial institutions use collateral to support trades, loans and other financial obligations. This often involves assets such as Treasury securities, stocks and money market instruments.
Moving these assets between banks, brokers and other institutions can require multiple custodians, clearing systems and settlement procedures. Those processes can leave capital tied up while firms wait for transactions to complete.
Friedman believes blockchain-based assets could make these transfers faster and more flexible.
“If you tokenize all those instruments along with the flow of money, then the collateral becomes very fluid,” she said.
Her estimate suggests that better collateral management could make tens of billions of dollars available for other uses. Tokenized money could also help institutions settle transactions involving tokenized securities more efficiently.
The idea goes beyond cryptocurrency trading. It could affect the traditional financial instruments that banks, investment funds and trading firms already use every day.
Friedman also pointed to the U.S. GENIUS Act, which established a federal regulatory framework for payment stablecoins, as one development supporting institutional interest in digital assets.
Still, tokenization alone does not automatically release capital. Institutions would need compatible systems, reliable settlement arrangements and appropriate regulatory safeguards before they could use tokenized assets widely.
Nasdaq moves forward with Kraken parent Payward
Nasdaq is already working on blockchain-based securities infrastructure through a partnership with Payward, the parent company of cryptocurrency exchange Kraken.
On September 10, Nasdaq announced that its investment arm had agreed to invest $100 million in Payward. The deal builds on a partnership first disclosed in March 2026, when the companies outlined plans for tokenized equity infrastructure.
Their proposed system aims to connect regulated stock markets with blockchain networks while preserving shareholder rights and market transparency.
The partnership covers trading infrastructure, blockchain settlement and market surveillance technology. The companies expect to introduce Nasdaq Equity Tokens during the second quarter of 2027.
Nasdaq has also sought regulatory approval to support tokenized securities trading on its exchange. Its proposal is intended to allow eligible stocks and exchange-traded products to trade in tokenized form while maintaining applicable investor protections.
For tokenized shares to operate within the U.S. financial system, the underlying arrangements must comply with securities rules governing ownership, trading and investor rights.
The Payward partnership is therefore part of a broader effort to connect traditional financial markets with blockchain-based infrastructure rather than replace existing safeguards.
Tokenized stocks expand as interest in 24/7 trading grows
Tokenized stocks are also gaining ground through other platforms.
On October 8, Securitize announced blockchain-based representations of 12 U.S. stocks through its regulated brokerage platform. The initial selection included companies such as Apple, Microsoft, Nvidia, Alphabet, Tesla and Amazon.
The products launched on Solana for eligible investors in the United States, the European Union and other permitted markets.
Each token represents an interest connected to an underlying share held through the relevant custody arrangements. However, holding a token does not necessarily make an investor a directly registered shareholder on the issuing company’s records. The specific ownership and economic rights depend on the product’s legal structure.
Securitize initially offered trading 24 hours a day, five days a week, with seven-day trading planned for a later stage.
Friedman said retail investors have wanted access to markets outside traditional trading hours for years. She suggested that individual investors may be ahead of institutions in their expectations for continuous trading.
But keeping a trading platform open is only one part of the challenge.
Banks and brokers must continuously monitor positions, calculate exposure, manage collateral and ensure that transactions settle correctly. Financial firms have traditionally used market closures to reconcile records, update systems and perform risk checks.
In a 24/7 market, those tasks would need to continue without interruption.
Friedman sees artificial intelligence as one way to help financial institutions manage that workload. Nasdaq has introduced digital agents in its risk management platform that initially provide recommendations, with the possibility of more direct automated action as safeguards develop.
However, she warned that not every asset has enough trading activity to support continuous markets.
“Not every asset is liquid enough to support a 24/7 environment.”
In other words, extending trading hours will not automatically create enough buyers and sellers to keep every market functioning smoothly.
Financial institutions look for wider access to U.S. markets
The tokenization push also reflects demand from international businesses and investors seeking easier access to U.S. financial markets.
At TOKEN2049, Kraken co-CEO Arjun Sethi discussed interest from companies outside the United States in raising capital through public markets. He described a business generating around $25 million in revenue that was exploring its options.
Sethi suggested tokenization could create additional ways for international companies and investors to participate in financial markets.
Payward has been expanding its financial services through acquisitions, tokenized securities initiatives and partnerships with established market operators.
Other major companies are pursuing similar plans. On October 5, a joint venture involving cryptocurrency exchange OKX and Intercontinental Exchange submitted an SEC filing seeking permission to operate a tokenized securities trading platform called OKXICE.
The proposed platform would support tokenized U.S. stocks, including trading outside conventional market hours. Its application remains subject to regulatory review, so the filing does not mean the venue has received final approval.
Securitize has identified OKXICE and a planned New York Stock Exchange alternative trading system as potential venues for its tokenized securities.
For now, its initial products are available through its own registered broker-dealer platform, subject to customer eligibility and trading restrictions.
Tokenization could reshape how financial markets operate
Nasdaq’s plans, the Payward partnership and the launch of tokenized stocks show that financial institutions are exploring ways to bring traditional assets onto blockchain networks.
The potential benefits include faster transfers, more flexible collateral management and wider access to markets outside standard trading hours. Tokenized money could also make settlement more efficient when used alongside tokenized securities.
But the transition will depend on more than technology. Institutions must maintain clear ownership rights, reliable settlement, sufficient liquidity and continuous risk controls.
Friedman’s central argument is that tokenization could make existing financial assets easier to use without changing their fundamental purpose. If the necessary infrastructure and regulatory arrangements develop, some of the capital currently tied up in collateral could become available for other financial activities.
