Token2049 Conference Highlights Potential of Tokenization in Finance
- Nasdaq CEO Adena Friedman states tokenization could unlock billions in capital.
- The transition to a 24/7 trading environment presents challenges but is seen as vital.
- Companies worldwide are eyeing tokenization for better access to U.S. capital markets.
At the Token2049 conference in Singapore on Thursday, October 8, 2026, Nasdaq CEO Adena Friedman emphasized the transformative potential of tokenization within the global financial system. She indicated that this process could release tens of billions of dollars previously tied up as collateral in various assets.
Friedman elaborated that by tokenizing assets such as U.S. Treasurys, equities, and money market funds—along with the corresponding flow of capital—collateral can become significantly more liquid. “If you tokenize all those instruments along with the flow of money, then the collateral becomes very fluid,” she stated in an interview with CNBC’s Joanna Ossinger.
The concept of tokenization involves creating digital tokens to represent financial assets like stocks and bonds, facilitating their transfer through blockchain technology. According to Friedman, the increasing institutional interest in tokenization has been partly driven by recent legislative developments in the U.S., citing the passing of the Genius Act, which set a regulatory framework for stablecoins.
Friedman noted that the convergence of institutional interest and retail investor demand—who seek the ability to engage in trading operations around the clock—indicates a significant shift. She remarked, “The retail ecosystem has been about 10 years ahead.”
The Push Toward 24/7 Trading
Transitioning to a fully operational 24/7 market would be a considerable challenge for the financial sector, Friedman asserted. “The easiest part is the exchange infrastructure,” she commented, stressing the need for continual processes in risk and collateral management to adapt to an around-the-clock environment.
Friedman highlighted that current practices require markets to close periodically for updates and risk management, but a 24/7 model mandates everything to be “real time all the time.” She pointed out that artificial intelligence could play a crucial role in this shift, as Nasdaq has introduced digital agents within its risk management system to provide initial recommendations.
Over time, these AI tools could empower banks to execute independent actions, contributing to the feasibility of a nonstop trading environment. “AI is critical for 24/7,” Friedman added.
Bridging Crypto and Traditional Finance
Arjun Sethi, co-CEO of cryptocurrency exchange Kraken, noted that companies outside the U.S. are increasingly seeking tokenization and access to American capital markets. He mentioned an example of a firm generating approximately $25 million in revenue that is exploring entry into capital markets, alongside larger international entities interested in tokenization and U.S. public listings.
Sethi argued that tokenization has the potential to broaden access to global capital markets. However, Friedman cautioned that not all assets may be suitable for continuous trading, stating, “Not every asset is liquid enough to support a 24/7 environment.” Nevertheless, she concluded that enhanced connectivity within the financial system could unlock access to previously inaccessible asset classes for many investors.
News Courtesy of CNBC
