Nasdaq CEO: Tokenization Could Unlock Trapped Capital
Nasdaq CEO Adena Friedman said tokenization of US Treasuries, equities and money-market funds could improve collateral liquidity and release billions of dollars in capital tied up in the global financial system. Institutional interest in tokenization has grown over the past year, partly following the US GENIUS Act, which established a regulatory framework for stablecoins.
Friedman said demand for round-the-clock trading is converging with institutional adoption, but operating markets 24/7 would require continuous risk and collateral management. She said AI will be essential to that shift. Nasdaq has introduced digital agents on its risk-management platform that initially provide recommendations, with the possibility of more direct action in the future.
Kraken co-CEO Arjun Sethi said companies outside the US are also interested in tokenization and access to US capital markets. Friedman cautioned that not every asset has enough liquidity to support 24/7 trading.
Neutral
The announcement is structurally positive for tokenization and the development of digital asset markets, but it does not describe an immediate launch, a new investment commitment or a change to trading rules. It is therefore unlikely to create a broad, immediate directional signal for crypto prices, making the overall impact neutral.
In the short term, traders may view Nasdaq’s comments as supportive of the long-term institutional case for tokenization. The reference to the GENIUS Act also highlights how regulatory clarity around stablecoins could encourage institutional participation. However, these are broad industry observations rather than near-term catalysts for a specific token, so any market reaction is likely to be limited and more visible in sentiment toward tokenized-asset and infrastructure projects.
Over the longer term, tokenization could make collateral easier to move and use, while 24/7 markets could expand access and trading opportunities. Nasdaq’s use of AI agents for risk management signals how exchanges may adapt to continuous operation. These benefits depend on regulatory implementation, reliable risk controls and sufficient liquidity. As Friedman noted, not every asset can support round-the-clock trading; thin liquidity and continuous market operations could also increase volatility or operational risks. Similar announcements about institutional blockchain adoption have often strengthened long-term narratives without producing sustained price moves unless followed by concrete products, adoption or measurable capital flows.