Nasdaq CEO Adena Friedman has said blockchain tokenization could release tens of billions of dollars currently tied up as collateral in global financial markets, while creating opportunities for financial institutions to move toward round-the-clock trading.
Summary
- Nasdaq CEO Adena Friedman said tokenization could free billions of dollars tied to financial collateral.
- Friedman identified Treasury securities, stocks and money market funds as assets suitable for blockchain representation.
- Nasdaq agreed in September to invest $100 million in Kraken parent Payward for market infrastructure.
- Securitize launched tokenized versions of 12 U.S. stocks on Solana for eligible investors in October.
- Friedman warned that continuous trading requires real time risk controls and sufficient liquidity across assets.
CNBC reported Friedman’s comments from an October 8 interview at TOKEN2049 in Singapore, where she discussed how converting Treasury securities, stocks and money market funds into digital tokens could make financial assets easier to transfer. The Nasdaq executive said tokenizing both assets and the money used to settle transactions could improve how banks and other institutions manage their collateral.
The estimate concerns capital that could become available through future changes to financial infrastructure. Friedman did not announce that Nasdaq had already released those funds or completed an industrywide tokenization system.
Nasdaq CEO sees billions in tokenized financial assets
Friedman’s comments focused on collateral, which financial institutions pledge to support trades, loans and other financial obligations.
Banks and trading firms commonly use Treasury securities, shares and money market instruments as collateral when conducting transactions with other institutions.
According to the Nasdaq executive, the existing financial system can require institutions to keep substantial amounts of capital tied to those arrangements.
Moving collateral between firms may involve separate custodians, clearing systems and settlement procedures. Friedman believes blockchain-based representations of financial assets could make that process more efficient.
During her interview, she said: “If you tokenize all those instruments along with the flow of money, then the collateral becomes very fluid.”
The executive expects tokenized assets to support quicker transfers between financial institutions, particularly when those assets can move alongside digital representations of cash.
Friedman identified tens of billions of dollars as the potential amount of capital that could become available through improved collateral management. The figure was presented as her assessment of an opportunity, not a verified calculation of funds already released.
Meanwhile, Friedman said institutional interest in tokenization had increased over the preceding year. She linked part of that interest to the passage of the U.S. GENIUS Act, which established a federal regulatory framework for payment stablecoins.
In her view, tokenized money could provide financial institutions with another way to settle transactions involving tokenized securities. The proposal extends beyond cryptocurrency trading to the financial instruments traditionally held by banks, funds and other institutional investors.
Nasdaq expands tokenization plans with Kraken partnership
Nasdaq has taken steps toward blockchain-based securities infrastructure through its 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 agreement expanded a partnership first disclosed in March 2026, when the companies outlined plans to develop tokenized equity infrastructure.
Their proposed system would connect regulated stock markets with blockchain networks while preserving shareholder rights and market transparency.
According to Nasdaq, the collaboration includes trading infrastructure, blockchain settlement and surveillance technology.
The companies expect to introduce Nasdaq Equity Tokens during the second quarter of 2027.
As covered in the Nasdaq investment in Kraken parent Payward, the agreement valued Payward at approximately $21 billion and included plans to deploy Nasdaq’s market surveillance tools across participating trading venues. Nasdaq previously submitted a proposal to the U.S. Securities and Exchange Commission in September 2025 seeking permission to facilitate tokenized securities trading on its exchange.
The company explained that the proposal would allow eligible stocks and exchange-traded products to trade in tokenized form while retaining applicable investor protections.
The proposed arrangement depends on clearing and settlement infrastructure capable of supporting securities represented as digital tokens. In the U.S., tokenized shares must comply with applicable securities rules, including requirements governing ownership, market access and investor protection.
A September 2026 SEC framework created a temporary pathway for certain tokenized U.S. stocks to trade through approved venues. The framework requires qualifying tokens to preserve the economic and ownership rights attached to their underlying shares.
The SEC’s tokenized stock framework includes restrictions on eligible securities and trading activity, with the regulator retaining authority to modify its conditions.
Tokenized stocks gain ground as 24/7 trading draws interest
Friedman’s comments followed another development in the U.S. market for tokenized securities. On October 8, Securitize announced the launch of blockchain-based representations of 12 U.S. stocks through its regulated brokerage platform. The initial offering included shares linked to Apple, Microsoft, Nvidia, Alphabet, Tesla, Amazon and other publicly traded companies. Securitize said the products would initially operate on Solana and would be available to eligible investors in the U.S., European Union and other permitted markets.
Each token is backed by an underlying share held through the company’s custody arrangements. Securitize describes the products as security entitlements, allowing investors to access applicable economic benefits while ownership records remain subject to its brokerage and custody structure.
An October 9 examination of Apple shares on Solana explained that token holders are not automatically registered as direct shareholders on the issuing company’s records. The company currently advertises trading availability for 24 hours a day, five days a week, with continuous seven-day trading planned for a later stage.
According to Friedman, retail investors have wanted access to markets outside traditional trading hours for many years. She described individual investors as being roughly a decade ahead of institutions in their expectations for continuous trading.
However, the Nasdaq chief cautioned that expanding trading hours requires more than keeping an exchange’s matching system operational.
Banks and brokers need to monitor positions, calculate exposure and manage collateral while transactions continue. Historically, financial firms have used periods when markets are closed to update systems, reconcile transactions and conduct risk checks.
Under an always-open market structure, Friedman said institutions would need to perform those functions continuously. She described artificial intelligence as important to developing those capabilities.
Nasdaq has introduced digital agents within its risk management platform that initially make recommendations to financial institutions. Friedman expects such systems could eventually take more direct action as firms develop safeguards for automated decisions.
Still, she cautioned that not every financial asset has enough trading activity to support continuous markets. “Not every asset is liquid enough to support a 24/7 environment.”
Financial institutions examine global access to U.S. markets
Alongside the discussion of collateral, cryptocurrency exchange executives have described growing international demand for tokenized financial products.
Speaking to CNBC at TOKEN2049, Kraken co-CEO Arjun Sethi discussed businesses outside the U.S. interested in accessing American capital markets. Sethi referred to one company generating approximately $25 million in revenue that was exploring opportunities to raise capital through public markets. He suggested that tokenization could provide additional ways for international businesses and investors to participate in financial markets.
Kraken’s parent company has expanded its regulated market operations through acquisitions, tokenized securities services and partnerships with established financial institutions.
A September review of Payward’s financial infrastructure expansion detailed its second-quarter adjusted revenue of $508 million and the company’s investments in trading, clearing and other financial services.
Separately, on October 5, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange submitted an SEC filing seeking permission to operate a tokenized securities trading platform.
Reuters reported that the proposed venue, OKXICE, would support trading in tokenized U.S. stocks, including activity outside conventional market hours. The application remains subject to the applicable regulatory process and does not establish that the venue has received final authorization.
Securitize’s October 8 announcement identified the proposed OKXICE platform and an upcoming New York Stock Exchange alternative trading system as possible venues for its tokenized securities.
At launch, Securitize’s products were available through its own registered broker-dealer platform, with trading and eligibility restrictions applying to participating customers. The company said its tokenized stocks would initially be supported on Solana, with a starting selection of 12 equities including Apple, Nvidia, Microsoft, Tesla and Amazon.
