Tokenization could help banks put collateral to work more efficiently, Nasdaq CEO Adena Friedman said at TOKEN2049 in Singapore on Oct. 8, 2026. But the potential to free up “tens of billions of dollars” is an estimate, not capital already released. And keeping an exchange online would be only one part of making markets run around the clock.
- Friedman sees more efficient collateral management as a major potential benefit.
- Continuous trading would also require banks and risk systems to operate continuously.
- Tokenized stocks can represent different legal rights and product structures.
- Market access, liquidity and investor protections are separate questions.
How tokenization could help institutions use collateral
Tokenization means representing an asset, such as a Treasury, stock or money-market fund, as a digital token that can move using blockchain technology. Friedman told CNBC that tokenizing assets and money transfers could make collateral more liquid and easier for institutions to use.
Collateral is an asset pledged to secure a financial obligation. Banks and other institutions manage collateral across transactions and counterparties. When assets are hard to locate, transfer or coordinate, they may not be readily available where they are needed. Tokenization could make those processes more efficient.
That would not create new wealth or automatically make an asset easier to sell. The potential benefit is that institutions could use existing assets more effectively instead of leaving capital tied up or inaccessible. Friedman said this could free up “tens of billions of dollars” in capital, but CNBC did not report a calculation, an implementation example or an amount already realized.
The promise depends on more than putting an asset on a blockchain. Institutions still need clear legal rights, reliable settlement, trusted counterparties and sound operational controls. A faster digital transfer helps only if the parties agree on what changed hands and what claims the recipient holds.
24/7 trading takes more than an always-open exchange
Retail investors have long wanted to trade outside conventional market hours. Friedman said the retail ecosystem “has been about 10 years ahead, ” describing a gap between what consumers expect and what traditional market infrastructure can support.
But an exchange staying open is only one part of continuous trading. Friedman called it the easiest part. Banks and other financial institutions would also need to manage collateral and risk continuously, rather than rely on market closures for maintenance, reconciliation and risk processes.
Continuous availability does not guarantee continuous liquidity, either. Friedman cautioned that not every asset is liquid enough to support a 24/7 market. Some markets may be thin at certain hours, with fewer buyers and sellers making prices more volatile or trades harder to complete.
Friedman said artificial intelligence could play a bigger role in real-time risk management. Nasdaq had launched digital agents in its risk-management platform that initially provide recommendations, according to CNBC. Friedman said banks might eventually let agents take more direct action. That is a possible future use, not evidence that AI systems already manage financial risk autonomously at scale.
Institutional interest and international demand
Friedman pointed to rising institutional interest over the previous year and cited, in part, passage of the GENIUS Act, which CNBC described as establishing a U.S. regulatory framework for stablecoins. The law concerns stablecoins. It does not, by itself, settle the rules for tokenized stocks or prove that institutions have adopted tokenization at scale.
Kraken co-CEO Arjun Sethi described another source of interest: companies outside the United States seeking access to American capital markets. He cited an unnamed company generating roughly $25 million in revenue that was exploring its options, along with larger international businesses interested in tokenization and U.S. public listings.
Sethi argued that tokenization could expand capital-market access for companies around the world. These examples show that some businesses are exploring the option. They do not establish broad demand or guarantee deep liquidity, unrestricted access or the same protections across jurisdictions.
What does a tokenized stock give its holder?
“Tokenized stock” covers a range of products, not one standard legal arrangement. A token might represent an entitlement connected to an underlying share, or it might track the share’s price without giving the holder the same rights as a shareholder. The blockchain label alone does not tell you what a holder owns, whether the token can be redeemed or what protections apply.
Yahoo Finance described Securitize Stocks as a security entitlement under the Uniform Commercial Code, or UCC, a U.S. legal framework covering commercial transactions. In this context, a security entitlement is a claim to securities held through a financial intermediary. It is not necessarily the same as being listed as the share’s direct registered owner.
According to the Yahoo Finance report, Securitize said its tokens were backed one-to-one by shares and intended to preserve economic benefits such as dividends and, where applicable, voting rights. Those details describe Securitize’s stated structure. They should not be assumed to apply to other tokenized-stock products.
The report said Securitize’s Solana offering included U.S. stocks such as Apple, Amazon and Tesla. At launch, trading was described as available during extended hours through Securitize’s registered broker-dealer platform, with settlement in USDC, a dollar-pegged stablecoin. Access depended on investor eligibility and jurisdiction. A move to 24/7 trading was planned, but the report did not say continuous trading was already live.
These distinctions matter. Tokenization may change how an asset is represented or transferred, but securities laws, access restrictions and the need to understand a product’s legal claims remain. Investors should read the product’s terms rather than infer ownership rights from a ticker symbol or blockchain transaction. Nasdaq has also targeted tokenized stocks with shareholder rights by 2027.
Key questions about tokenization
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Could tokenization free up tens of billions of dollars?
Friedman said more efficient collateral use could do so. That is a potential estimate, not an amount already reported as released.
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Does tokenization automatically enable 24/7 trading?
No. Banks, collateral processes and risk systems would also need to run continuously. Some assets may not have enough liquidity for around-the-clock trading.
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Does every tokenized stock provide shareholder rights?
No. Rights depend on the product’s legal structure. Holders should check what claim the token represents, whether it can be redeemed and what protections apply.
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What do Nasdaq’s AI agents currently do?
Friedman said they initially provide recommendations in Nasdaq’s risk-management platform. Agents taking more direct action was discussed as a possible future step.
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Does international interest prove tokenization will broaden market access?
No. Sethi described companies exploring the opportunity, but access and liquidity depend on legal rules, investor eligibility and each product’s terms.
Tokenization has a practical case if it helps institutions move and reuse collateral while keeping ownership easy to verify. The harder test is whether legal claims, liquidity and risk controls stay clear as assets move across systems, especially when markets no longer close for the night.
