Tokenization’s Potential Impact on Global Capital
During the TOKEN2049 conference held in Singapore on October 8, 2026, Nasdaq CEO Adena Friedman highlighted the significant financial benefits of tokenization. She stated that this process could potentially unlock tens of billions of dollars in capital currently tied up as collateral within the global financial system.
Friedman discussed how tokenizing assets like Treasurys, equities, and money market funds could enhance the liquidity of collateral. She shared her insights during an interview with CNBC’s Joanna Ossinger, emphasizing that, “If you tokenize all those instruments along with the flow of money, then the collateral becomes very fluid.”
Essentially, tokenization transforms financial assets (like stocks and bonds) into digital tokens that can be transferred seamlessly using blockchain technology. Friedman noted a growing institutional interest in this area over the past year, particularly after the passage of the Genius Act in the U.S., which established a regulatory framework for stablecoins. “If we can tokenize money, then we can tokenize the flow of capital,” she explained.
This surge in institutional interest seems to coincide with retail investors’ continued demand for more flexible trading options. According to Friedman, the retail ecosystem has been “about 10 years ahead” in this regard.
The Push Toward 24/7 Trading
Friedman pointed out that transitioning to a fully 24/7 trading market would be no small feat for the financial sector. “The easiest part is the exchange infrastructure,” she remarked. Traditionally, financial institutions have enforced trading pauses to manage systems and risks, but 24/7 operations would necessitate continuous real-time processes for risk and collateral management.
“Everything has to be real-time all the time,” Friedman said, highlighting the challenges ahead.
She also noted that artificial intelligence could play a crucial role in facilitating this transition. Nasdaq has already begun to implement digital agents within its risk management platform that offer recommendations initially, with plans for banks to eventually utilize these agents for more decisive actions. “AI is critical for 24/7,” she added.
Bridging Crypto and Traditional Finance
There’s growing interest in tokenization from companies outside the U.S., according to Arjun Sethi, co-CEO of cryptocurrency exchange Kraken. He shared an example of a firm earning approximately $25 million in revenue that is looking to tap into capital markets, along with larger international firms interested in U.S. public listings.
Sethi believes that tokenization could significantly broaden access to capital markets globally. However, not every asset may be suited for round-the-clock trading, as Friedman cautioned, stating, “Not every asset is liquid enough to support a 24/7 environment.”
Nevertheless, an increase in connectivity across the financial system could potentially provide access to asset classes that some investors previously couldn’t reach, as Friedman concluded.
