Nasdaq CEO Says Tokenization Could Free Billions in Global Collateral
Speaking to CNBC during TOKEN2049 in Singapore, Friedman pointed to tokenized Treasury securities, equities and money market funds as potential tools for modernizing institutional financial operations. Financial institutions currently hold collateral to support transactions, manage exposure and meet settlement obligations across markets.
Nasdaq and Kraken Parent Develop Tokenized Equity Infrastructure
Nasdaq is collaborating with Payward, the parent company of Kraken, to develop infrastructure connecting traditional financial markets with blockchain networks. The initiative centers on an equities transformation gateway designed to link regulated financial infrastructure with permissionless networks that support tokenized securities.
The proposed gateway would enable financial assets to move across blockchain environments while retaining connections to established market infrastructure. The effort reflects Nasdaq's work to bridge conventional securities markets and blockchain-based systems.
Friedman also pointed to increasing institutional interest in tokenization, highlighting regulatory developments involving digital assets and stablecoins. She identified the GENIUS Act, which established a regulatory framework for stablecoins, as an important factor supporting institutional adoption.
Tokenizing money could also help financial institutions manage capital flows more efficiently. In Friedman's view, these developments form part of a broader modernization of financial market operations.
AI and Risk Controls Key to Round-the-Clock Trading
Friedman said enabling financial markets to operate around the clock would require more than changes to exchange trading systems. Institutions would also need to address risk management, collateral handling and system maintenance without depending on scheduled market closures to carry out essential operational tasks.
To help address these challenges, Nasdaq has introduced artificial intelligence agents within its risk management platform. The agents currently provide recommendations to support institutional decision-making, although future versions could be able to execute certain actions more directly.
Friedman described AI as a supporting technology for financial institutions working toward continuous trading operations. Risk controls and collateral processes would need to remain functional even when markets no longer follow traditional opening and closing schedules.
She also said retail markets had advanced substantially in round-the-clock trading, placing them roughly ten years ahead of institutional markets.
Nasdaq's approach combines tokenization, blockchain connectivity and AI-supported risk management as it explores ways to improve institutional financial operations. The potential release of collateral tied up across global markets remains one of the key benefits Friedman associated with tokenized financial assets.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.