Nasdaq CEO Says Tokenization Could Free Billions in Collateral

Nasdaq CEO Adena Friedman said blockchain tokenization could release tens of billions of dollars currently tied up as collateral in global financial markets, while supporting institutional moves toward 24/7 trading. Speaking during an interview at TOKEN2049 in Singapore, Friedman identified Treasury securities, stocks, and money market funds as prime assets for blockchain representation to streamline transfers and collateral management.

Friedman noted that existing financial structures require institutions to maintain substantial capital reserves for trade obligations across multiple custodians and clearing systems. Tokenizing both assets and settlement currency could render that collateral fluid. She added that institutional interest in tokenization has grown over the past year, aided by regulatory developments like the U.S. GENIUS Act, which established a federal framework for payment stablecoins.

Infrastructure and Market Expansion

Nasdaq has advanced its blockchain securities plans through partnerships and regulatory filings. In September, Nasdaq's investment arm agreed to invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken, valuing Payward at approximately $21 billion. The collaboration includes plans to introduce Nasdaq Equity Tokens during the second quarter of 2027, connecting regulated stock markets with blockchain networks.

Separately, Securitize launched tokenized versions of 12 U.S. stocks on Solana in October for eligible investors in permitted markets. While retail demand for continuous trading remains strong, Friedman cautioned that expanding trading hours requires real-time risk controls and sufficient liquidity across assets.

Key facts

• Nasdaq CEO Adena Friedman stated tokenization could free tens of billions in collateral.
• Nasdaq agreed to invest $100 million in Kraken parent Payward, targeting equity tokens by Q2 2027.
• Securitize launched tokenized versions of 12 U.S. stocks on the Solana network in October.
• Friedman highlighted Treasury securities, stocks, and money market funds as suitable assets.