NASDAQ CEO Adena Friedman highlights tokenization's potential to unlock billions in trapped capital
by@CNBC
Summary
Nasdaq CEO Adena Friedman stated that tokenization could unlock tens of billions of dollars in trapped capital within the global financial system, emphasizing its ability to make assets like Treasurys and equities more liquid. Speaking at the TOKEN2049 conference in Singapore, she noted the increasing institutional interest in tokenization has been spurred partly by the U.S. passage of the Genius Act, which established a regulatory framework for stablecoins. This institutional interest aligns with the longstanding demand from retail investors for 24/7 trading capabilities, a shift that would require continuous real-time risk and collateral management, potentially supported by artificial intelligence to facilitate the transition.
Analysis
Kraken: Kraken is a major cryptocurrency exchange offering spot trading, derivatives, and institutional services to clients worldwide. Its co-CEO participated in discussions at TOKEN2049 about how tokenization can help companies outside the U.S. tap into global liquidity and U.S. market opportunities. The platform continues to engage with evolving institutional demand for tokenized assets and regulatory clarity. Nasdaq: Nasdaq operates one of the world's largest stock exchanges and provides trading, clearing, and market data services to global financial participants. Its CEO recently highlighted at the TOKEN2049 conference how tokenizing assets like Treasurys and equities could make collateral far more liquid and fluid across the financial system. The exchange is also developing AI-driven digital agents to support continuous risk management needed for potential 24/7 trading. Arjun Sethi: Arjun Sethi is co-CEO of the cryptocurrency exchange Kraken, overseeing its global operations and product strategy. During the same conference, he discussed rising interest from non-U.S. companies seeking tokenization solutions to access American capital markets and public listings. His comments underscored tokenization's potential to broaden capital access for international firms. Adena Friedman: Adena Friedman serves as CEO of Nasdaq, leading the exchange's strategic initiatives in technology and market infrastructure. At TOKEN2049 in Singapore, she explained how tokenization combined with tokenized money flows could unlock trapped capital and enable real-time collateral management. She also noted that AI tools will be essential for handling the operational demands of continuous market activity. Adoption: Institutional interest in tokenization has grown over the past year and is converging with long-standing retail demand for continuous trading access. Regulation: The U.S. passage of the Genius Act has established a regulatory framework for stablecoins, contributing to increased institutional interest in tokenization. Technology: Artificial intelligence is viewed as critical for enabling 24/7 market operations by supporting real-time risk and collateral management processes.
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