Nasdaq CEO: Tokenization Can Unlock Billions in Trapped Capital, AI Crucial for 24/7 Trading

October 9 — Nasdaq CEO Adena Friedman said at the TOKEN 2049 Singapore conference that tokenizing Treasuries, equities, money market funds, and cash flows can make collateral more liquid and unlock billions of dollars in trapped capital across the global financial system. She noted that institutional interest in tokenization has grown significantly over the past year, partly thanks to the U.S. GENIUS Act establishing a regulatory framework for stablecoins. If money can be tokenized, capital flows can be tokenized, she said. Friedman also said institutional interest is converging with retail demand, which has long sought round-the-clock trading capability, with the retail ecosystem roughly 10 years ahead.

Friedman acknowledged that moving toward a fully 7×24 market is a massive undertaking for the financial industry, and that the easiest part is exchange infrastructure. Traditional financial institutions have historically had closed periods for system updates and risk management, while round-the-clock operations require continuous risk and collateral management, with everything having to be real-time at all times. Friedman also believes AI is crucial for 24/7 trading, and Nasdaq has already launched digital agents on its risk management platform, initially providing recommendations, with banks potentially using them in the future to take more direct action. Kraken co-CEO Arjun Sethi added that companies outside the U.S. have strong interest in tokenization and accessing U.S. capital markets, including a business with about $25 million in revenue and larger international companies. But Friedman also cautioned that "not all assets are liquid enough to support a 24/7 environment."