Nasdaq CEO Adena Friedman says tokenizing Treasuries, equities, money-market funds and cash flows could release tens of billions of dollars tied up as collateral. Her argument is about market plumbing rather than speculative crypto: digital representations of regulated assets could move more easily between institutions, improve collateral mobility and support markets that operate beyond traditional hours.
Where the efficiency could come from
Collateral is often fragmented across custodians, clearing systems and legal entities. If assets and cash can be transferred on compatible ledgers with programmable compliance, institutions may need smaller liquidity buffers and can reuse eligible collateral faster. That could reduce funding friction for brokers, asset managers and clearing members.
Tokenization should not be confused with an automatic move to instant settlement. US equities already shifted from T+2 to T+1 on 28 May 2024. Same-day or atomic settlement can reduce counterparty exposure, but it may also require buyers to pre-fund trades and can eliminate useful netting. The economic benefit depends on design, interoperability and whether tokenized assets are recognized by regulators and central counterparties.
Why this matters for Nasdaq
For Nasdaq, tokenization could create revenue opportunities in exchange technology, market surveillance, custody-adjacent infrastructure and data. It may also strengthen the strategic value of platforms that can connect conventional securities with digital rails. The upside is likely gradual: institutional adoption depends on common standards, legal finality and reliable links between tokenized cash and securities.
Bull case, bear case and milestones
The bull case is that tokenized collateral lowers liquidity costs and enables longer trading hours without weakening investor protection. The bear case is fragmentation: multiple ledgers, inconsistent custody rules and smart-contract risk could add complexity instead of removing it. Cybersecurity and governance failures would carry systemic consequences if the infrastructure becomes widely used.
- Regulatory treatment of tokenized securities and stablecoin settlement
- Interoperability between ledgers, custodians and clearing houses
- Evidence of lower margin or liquidity requirements in live programs
- Nasdaq disclosures on product launches, client adoption and revenue
Investors should treat the “tens of billions” figure as management's estimate of potential efficiency, not booked revenue or guaranteed savings. The investable question is whether pilot projects progress into regulated, scalable infrastructure with measurable adoption.
Sources: CNBC interview summary, 8 October 2026; SEC on T+1 settlement.