Tokenization Could Unlock Billions, Says Nasdaq CEO Friedman

Nasdaq CEO Adena Friedman highlighted the potential of tokenization to release tens of billions of dollars in trapped capital. Speaking at the Token2049 conference in Singapore, Friedman explained that tokenizing assets such as Treasurys and equities could improve liquidity across financial systems. This move is attracting both institutional and retail interest, with the latter demanding 24/7 trading capabilities. Friedman noted that AI would be crucial for managing continuous risk and collateral in a round-the-clock market environment. According to Kraken's co-CEO Arjun Sethi, companies are eyeing tokenization for greater access to U.S. capital markets.

The increasing interest in tokenization is supported by the regulatory framework established by the Genius Act in the U.S., which paves the way for stablecoin integration. However, Friedman acknowledged that not all assets would benefit from 24/7 trading due to liquidity concerns. Kraken's Sethi cited a company generating $25 million in revenue as an example of those looking to utilize tokenization for international capital market access.

This matters for investors as tokenization could enhance market liquidity and accessibility, potentially leading to broader trading opportunities and new financial products.