Nasdaq CEO: Tokenization can unlock tens of billions of dollars of trapped capital in the global financial system, and AI is crucial for 24/7 trading

Adena Friedman, CEO of Nasdaq, stated at the TOKEN 2049 conference in Singapore that tokenizing government bonds, stocks, money market funds, and funds can enhance collateral liquidity and unlock billions of dollars of trapped capital in the global financial system. Over the past year, institutional interest in tokenization has significantly increased, partly due to the U.S. GENIUS Act establishing a regulatory framework for stablecoins.

She mentioned that institutional interest is converging with retail demand for around-the-clock trading. The retail ecosystem is about 10 years ahead, but moving towards a fully 7×24 hour market is a massive undertaking for the financial industry, requiring continuous real-time risk and collateral management. She also pointed out that AI is crucial for 7×24 hour trading, and Nasdaq has launched digital agents on its risk management platform, initially providing recommendations, with banks able to take more direct actions in the future. Arjun Sethi, co-CEO of Kraken, stated that companies outside the U.S. are also very interested in tokenization and entering the U.S. capital markets, including a company with approximately $25 million in revenue and larger international firms. Friedman cautioned that not all assets have sufficient liquidity to support a 7×24 hour trading environment.