Nasdaq CEO Says Tokenization Could Free Billions in Collateral: The Plumbing Is Not Ready
Blockchain-based tokens could make financial collateral easier to transfer and potentially put tens of billions of dollars to more productive use, Nasdaq CEO Adena Friedman says. That is a projection, not money already freed. Making it happen will require legal, operational and risk-management systems that work across institutions.
- Friedman identified Treasuries, stocks and money market funds as candidates for tokenization.
- She estimated better collateral management could make tens of billions of dollars available.
- Round-the-clock trading needs liquidity and continuous risk controls, not just an exchange that stays online.
- Nasdaq, Payward, Securitize and an OKX and ICE venture are pursuing projects at different stages.
Speaking to CNBC at TOKEN2049 in Singapore on October 8, 2026, Friedman described a system where financial assets and settlement money could move digitally together.
“If you tokenize all those instruments along with the flow of money, then the collateral becomes very fluid.”
Collateral is an asset pledged to support a trade, loan or other financial obligation. Firms use assets such as Treasury securities and shares for this purpose. Moving collateral between institutions can involve custodians, clearing systems and settlement procedures. Assets may remain unavailable while transfers are processed or verified.
Tokenization could reduce some of that friction by making assets easier to transfer and reconcile. But a blockchain token does not, by itself, eliminate custodians, legal restrictions or settlement rules. Institutions and their counterparties would still need to accept the collateral, recognize the rights it carries and connect the systems involved.
Friedman estimated that better collateral management could make tens of billions of dollars available. CNBC reported this as a potential opportunity, not a measured amount already released. Friedman gave no calculation or timeline, and no industrywide system has completed the work needed to deliver that result.
Tokenized markets are at different stages
Nasdaq and Payward: partnership planned. On September 10, 2026, Nasdaq announced that its investment arm had agreed to invest $100 million in Payward, Kraken’s parent company. CNBC reported that the agreement valued Payward at approximately $21 billion. The investment expanded a partnership first disclosed in March 2026.
The companies expect to introduce Nasdaq Equity Tokens in the second quarter of 2027. Nasdaq says the planned system would connect regulated stock markets with blockchain networks and include trading infrastructure, blockchain settlement and surveillance technology. The companies say they aim to preserve shareholder rights and market transparency. The launch remains a plan, not an operating market.
Nasdaq had previously submitted a proposal to the U.S. Securities and Exchange Commission (SEC) in September 2025 seeking permission to facilitate tokenized securities trading on its exchange. The proposal would let eligible stocks and exchange-traded products trade in tokenized form while retaining applicable investor protections. A proposal is not regulatory approval.
Securitize: stock-token offering announced. On October 8, 2026, Securitize announced blockchain-based representations of 12 U.S. stocks through its regulated brokerage platform. The initial selection included shares linked to Apple, Microsoft, Nvidia, Alphabet, Tesla and Amazon. Securitize said the products would initially operate on Solana and be available to eligible investors in the United States, European Union and other permitted markets.
Securitize describes the products as security entitlements, or rights associated with shares held through its custody arrangements. In plain terms, the token represents a claim connected to an underlying share held by a custodian. It does not automatically make the token holder a shareholder recorded directly on the issuing company’s books. The available information does not specify how voting or dividend rights work.
Securitize said its products were initially available through its own registered broker-dealer platform, subject to trading and eligibility restrictions. It advertised trading 24 hours a day, five days a week, with continuous seven-day trading planned for a later stage. Securitize also identified OKXICE and an upcoming New York Stock Exchange alternative trading system as possible venues. That does not mean either venue was already operating for its products.
OKXICE: application filed, approval unresolved. Reuters reported that a joint venture between OKX and Intercontinental Exchange submitted an SEC filing on October 5, 2026, seeking permission to operate a tokenized securities platform called OKXICE. The proposed venue would support tokenized U.S. stocks, including trading outside conventional market hours. The filing remained subject to regulatory review and did not authorize the platform to operate.
CNBC also described a temporary SEC pathway established in September 2026 for certain tokenized U.S. stocks to trade through approved venues. Under the framework as described, qualifying tokens must preserve the economic and ownership rights attached to the underlying shares. The SEC can change the conditions. The pathway does not mean every tokenized-stock product or venue is approved. The SEC has also issued a statement on tokenized securities.
Always-on markets need more than an always-on server
Trading outside conventional market hours appeals to investors who want more flexibility. Friedman told CNBC that retail investors had sought access beyond traditional hours for years and were roughly a decade ahead of institutions in expecting continuous trading.
But continuous trading brings continuous responsibilities. Firms must monitor positions, calculate exposure and manage collateral at all hours. Market closures have traditionally given them time to reconcile transactions, update systems and conduct risk checks. Without those pauses, the processes need to work reliably around the clock.
“Not every asset is liquid enough to support a 24/7 environment.”
Liquidity means buyers and sellers are available at prices that let trades happen without excessive volatility or difficulty. Keeping an exchange’s matching system online does not create liquidity or guarantee sound risk controls. Around-the-clock access could work for some assets and prove impractical for others.
Nasdaq has also introduced digital agents in its risk-management platform. They currently make recommendations. Friedman said they could eventually take more direct action, but that would depend on firms developing safeguards for automated decisions. Automation can speed up responses. Without clear limits and oversight, it can also scale mistakes quickly.
Friedman linked rising institutional interest in tokenization over the preceding year partly to the U.S. GENIUS Act, which established a federal regulatory framework for payment stablecoins. That framework may help institutions assess digital-money infrastructure, but it does not settle every question about tokenized securities, custody or trading. One projection from Citi sees tokenized securities hitting $5.5 trillion by 2030.
Key questions and answers
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Could tokenization free tens of billions in capital?
That is Friedman’s estimate of the potential benefit from more efficient collateral management. She provided no calculation, implementation timeline or amount already freed.
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Which assets did Friedman identify?
Treasury securities, stocks and money market funds. The rights attached to each token depend on its legal and operational structure.
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Does a Securitize stock token make its holder a direct registered shareholder?
No. Securitize says the underlying share is held through custody arrangements, so token holders are not automatically registered directly on the issuing company’s records. The available details do not specify voting or dividend arrangements.
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Can every asset trade around the clock?
No. Friedman said some assets lack enough liquidity. Continuous markets also need risk monitoring, exposure calculations and collateral management at all hours.
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Has OKXICE received approval?
No final authorization was reported. Its application remained under regulatory review.
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When are Nasdaq Equity Tokens expected?
Nasdaq and Payward expect to introduce them in the second quarter of 2027. That is a planned launch window, not a guarantee.
Tokenization may make financial assets easier to move, settle and use as collateral. The test is whether institutions can make the legal rights, custody, liquidity and risk controls work together, not whether they can put a familiar asset on a blockchain. Nasdaq’s separate Bitcoin index options also reflect the exchange’s expanding role in regulated digital-asset products.
