Full Breakdown
Nasdaq Pushes Tokenization to Unlock Trapped Collateral
By Drooid · · How we work
Core Event: Nasdaq CEO Highlights Tokenization Potential
At the TOKEN2049 conference in Singapore, Nasdaq chief executive Adena Friedman argued that representing assets such as Treasurys, equities and money-market funds as digital tokens could make collateral “very fluid.” She estimated that this shift could free tens of billions of dollars currently locked in collateral across the global financial system.
> “If you tokenize all those instruments along with the flow of money, then the collateral becomes very fluid.” — Adena Friedman, Nasdaq CEO
Background & Context
Tokenization refers to issuing financial assets as blockchain-based digital tokens that can be transferred instantly. The U.S. Genius Act—passed last year—created a regulatory framework for stablecoins, which Friedman said has spurred institutional curiosity.
Key Figures & Groups
- Adena Friedman — CEO, Nasdaq.
- Matthew Horne — Head of digital-asset strategists, Fidelity.
- Ka Yan Chan — Head of digital-assets business development, UBS.
- Arjun Sethi — Co-CEO, Kraken.
Data & Statistics
- Friedman’s estimate: tens of billions of dollars could be unlocked.
- RWA.xyz data show demand for tokenized assets rose 41 % over the prior 30 days, with over 493,000 wallet addresses holding such assets when stablecoins are excluded.
- Ethereum hosts roughly 45 % of about $38 billion in tokenized real-world assets (early August, Crypto Briefing).
- As of April, only about 2 % of Nasdaq equity volume traded outside existing extended-hours sessions.
Official Statements & Responses
Friedman stressed that while the exchange’s infrastructure can support 24/7 trading, continuous risk-management and collateral handling are the harder challenges. She highlighted Nasdaq’s deployment of AI-driven digital agents that currently provide risk-management recommendations and could later execute actions directly.
> “What would really drive the billions to the trillions is when market infrastructure players like the Fed or DTCC make the first move in transforming the custody layer to a tokenized platform.” — Ka Yan Chan, UBS
Matthew Horne told the Longitude Singapore conference that the past 18 months have seen “no going back” for institutions moving toward an on-chain future.
Arjun Sethi added that firms outside the United States are assessing tokenization as a pathway to U.S. capital markets, citing a company with roughly $25 million in revenue exploring such routes.
Conflicting Reports & Gaps
Friedman’s “tens of billions” figure is an estimate; the methodology for calculating trapped collateral is not disclosed. The broader claim that tokenization could eventually scale to “trillions” rests on anticipated actions of the Fed or DTCC, which remain speculative. While a 23-hour, five-day equity session is slated, only a small share of overall Nasdaq volume currently trades outside traditional extended hours, indicating a gap between vision and present market participation.
What’s Next
- Dec 6, 2026 – Nasdaq launched a 23-hour, five-day equity session, the first step toward continuous trading.
- The DTCC began a three-year pilot to token-settle Treasury entitlements, with plans to extend to equities.
- Nasdaq’s pilot, approved by the SEC in March, will allow Russell 1000 stocks and major index ETFs to settle on a blockchain, testing the operational viability of tokenized settlement.