Tokenization could unleash tens of billions of dollars in trapped capital, Nasdaq CEO says
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In this article Tokenization could free up tens of billions of dollars in capital tied up in assets used as collateral across the global financial system, Nasdaq CEO Adena Friedman said. Tokenizing assets such as Treasurys, equities and money market funds, along with the flow of money, could make collateral more liquid, Friedman told CNBC's Joanna Ossinger, managing editor and head of APAC Digital News, at the TOKEN2049 conference in Singapore. "If you tokenize all those instruments along with the flow of money, then the collateral becomes very fluid," Friedman said. Tokenization involves representing financial assets, such as stocks and bonds, as digital tokens that can be transferred using blockchain technology. Friedman said institutional interest in tokenization has grown over the past year, pointing in part to 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 said. That growing institutional interest is converging with demand from retail investors, who have long sought the ability to trade around the clock, according to Friedman. The retail ecosystem "has been about 10 years ahead," she said. Moving to a fully 24/7 market would be a major undertaking for the financial industry, Friedman said. "The easiest part is the exchange infrastructure," she...
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Nasdaq has launched a series of digital agents within its risk management platform that initially provide recommendations, Friedman said.
