Tokenization might unleash billions in trapped capital
Attendees on the Token2049 convention in Singapore, on Thursday, Oct. 8, 2026. The crypto convention runs by means of right this moment. Photographer: Ore Huiying/Bloomberg through Getty Pictures
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Tokenization might release tens of billions of {dollars} in capital tied up in belongings used as collateral throughout the worldwide monetary system, Nasdaq CEO Adena Friedman mentioned.
Tokenizing belongings akin to Treasurys, equities and cash market funds, together with the stream of cash, might make collateral extra liquid, Friedman instructed CNBC’s Joanna Ossinger on the TOKEN2049 convention in Singapore.
“For those who tokenize all these devices together with the stream of cash, then the collateral turns into very fluid,” Friedman mentioned.
Tokenization includes representing monetary belongings, akin to shares and bonds, as digital tokens that may be transferred utilizing blockchain expertise.
Friedman mentioned institutional curiosity in tokenization has grown over the previous yr, pointing partly to the passage of the Genius Act within the U.S., which established a regulatory framework for stablecoins.
“If we are able to tokenize cash, then we are able to tokenize the stream of capital,” she mentioned.
That rising institutional curiosity is converging with demand from retail traders, who’ve lengthy sought the flexibility to commerce across the clock, in response to Friedman. The retail ecosystem “has been about 10 years forward,” she mentioned.
The push towards 24/7 buying and selling
Transferring to a completely 24/7 market could be a significant enterprise for the monetary trade, Friedman mentioned.
“The simplest half is the trade infrastructure,” she mentioned.
Friedman mentioned that monetary establishments have historically had durations when markets are closed to replace techniques and handle danger. However working across the clock would require these processes, together with danger and collateral administration, to happen repeatedly.
“Every thing must be actual time on a regular basis,” she mentioned.
Synthetic intelligence might assist monetary establishments handle that transition. Nasdaq has launched a sequence of digital brokers inside its danger administration platform that originally present suggestions, Friedman mentioned.
Over time, banks might use these brokers to take extra direct motion, she added.
“AI is important for twenty-four/7,” Friedman mentioned.
Bridging crypto and conventional finance
Firms outdoors the U.S. are displaying curiosity in tokenization and entry to American capital markets, Arjun Sethi, co-CEO of cryptocurrency trade Kraken, instructed CNBC.
Sethi pointed to an organization producing roughly $25 million in income that was exploring methods to entry capital markets, in addition to bigger worldwide firms occupied with tokenization and U.S. public listings.
He mentioned tokenization might assist develop entry to capital markets for firms world wide.
Nevertheless, round the clock buying and selling might not be appropriate for all the things, in response to Friedman.
“Not each asset is liquid sufficient to assist a 24/7 atmosphere,” she mentioned.
Nonetheless, larger connectivity throughout the worldwide monetary system might additionally open up entry to asset lessons that had been beforehand out of attain for some traders, Friedman mentioned.
