Nasdaq CEO Adena Friedman emphasized the vast potential of tokenization during the TOKEN2049 conference in Singapore. She noted that tokenization, which converts financial assets like stocks and bonds into digital tokens on blockchain technology, could unlock tens of billions of dollars in trapped capital. This process could make collateral more fluid, benefiting global financial systems.
Friedman highlighted growing institutional interest in tokenization, which contributed to the passage of the GENIUS Act in the U.S., a regulatory framework for stablecoins. She also mentioned that retail investors have long desired 24/7 trading capabilities, suggesting the retail ecosystem has been ahead of institutional interest by about a decade. However, achieving this might require significant changes to financial infrastructure, with AI expected to play a key role in real-time risk management.
Arjun Sethi, co-CEO of Kraken, echoed Friedman’s sentiments, noting that companies outside the U.S. are exploring tokenization to access American capital markets. This trend has led to a 473% growth in tokenized stocks this year, reaching a market cap of $3.75 billion. Leading issuers include Ondo, xStocksFi, and Binance bStocks, with Securitize Stocks recently launching on Solana, offering 1:1-backed entitlements to major U.S. stocks.