Nasdaq CEO Adena Friedman has highlighted the potential of tokenized money to revolutionize financial markets by enabling always-on trading. Speaking at the TOKEN2049 conference in Singapore, Friedman noted that tokenizing both cash and collateral could unlock tens of billions of dollars in trapped bank capital. She emphasized that while crypto traders have long operated 24/7, traditional finance still adheres to rigid banking hours.
Nasdaq plans to extend U.S. stock trading to 23 hours a day starting December 6, with a full 24/7 market being a more complex, long-term project. Friedman acknowledged that the real challenge lies in adapting the broader financial infrastructure to support continuous operations. Traditional bank wires, for instance, cannot facilitate real-time settlements during off-hours, making tokenized money a critical solution.
Friedman outlined a two-step approach: first tokenizing money through stablecoins, followed by tokenizing collateral like Treasuries and stocks. This could free up significant capital currently stuck in collateral pools. She credited the GENIUS Act, a 2025 stablecoin law, for setting the regulatory foundation needed for institutional adoption.
However, Friedman does not expect Wall Street to fully embrace crypto's entire ecosystem. Instead, traditional finance may selectively adopt tools like stablecoin settlement and extended trading hours. The Clarity Act, a broader crypto market-structure bill, remains uncertain, having failed a Senate vote earlier this year. Friedman's vision suggests that while tokenization will benefit companies like Circle Internet Group and Visa, it may not drive widespread crypto market growth.