Adena Friedman, CEO of Nasdaq, stated that tokenization could release tens of billions of dollars in capital by making collateral more liquid through the representation of financial assets as digital tokens on blockchain technology. Speaking at the TOKEN2049 conference, she noted that institutional interest has surged, particularly following the U.S.
Genius Act, which provides a regulatory framework for stablecoins. This development aligns with retail investors' long-standing desire for 24/7 trading. Friedman emphasized that transitioning to a fully operational 24/7 market would require significant changes in risk and collateral management processes, which must be real-time.
She also mentioned that artificial intelligence could facilitate this transition by enhancing risk management. Additionally, Arjun Sethi, co-CEO of Kraken, pointed out that companies outside the U.S. are exploring tokenization to access American capital markets, indicating a broader global interest.
However, Friedman cautioned that not all assets may be suitable for continuous trading due to liquidity constraints, but overall, tokenization could enhance connectivity and access to previously inaccessible asset classes for investors