Nasdaq Chair and CEO Adena Friedman has said tokenization could unlock tens of billions of dollars in capital currently tied up as collateral across the global financial system, highlighting the potential for blockchain infrastructure to improve liquidity and institutional market efficiency. Speaking to CNBC at the TOKEN2049 conference in Singapore on October 8, 2026, Friedman identified U.S. Treasury securities, equities and money market funds as assets that could become more transferable through tokenization. Her argument centers on improving the movement of existing financial assets rather than creating new capital.
Banks, brokers and investment firms routinely pledge securities as collateral to support derivatives positions, financing arrangements and other transactions. However, fragmented custody systems, settlement delays and operational requirements often force institutions to maintain additional collateral buffers. Friedman believes tokenizing securities alongside the money used to settle transactions could make these assets more readily available across financial markets. The tens-of-billions estimate represents a potential efficiency gain, not capital that has already been released.
Nasdaq Research Highlights Collateral Inefficiencies
The financial opportunity identified by Friedman is supported by research Nasdaq conducted with industry consultancy The ValueExchange. Their 2026 survey found that 70% of participating financial institutions experienced settlement matching or delivery problems daily. The average institution maintained approximately 7% excess collateral to protect against settlement failures and operational uncertainty. Additionally, 35% of respondents reported posting more than half their collateral overnight to ensure timely delivery. Such practices can leave substantial assets unavailable for alternative investment or financing activities.
The research suggested that tokenization could reduce operating costs associated with settlement exceptions by approximately 12%, while lowering collateral buffers through improved transaction certainty. It also found that 52% of surveyed institutions expected to manage live tokenized collateral by the end of 2026. These estimates reflect survey findings and modeled improvements rather than independently verified industry-wide savings. Tokenization could potentially reduce friction by allowing securities and cash representations to move across compatible digital infrastructure. However, legal recognition, custody arrangements and interoperability remain essential requirements.
Nasdaq Advances Institutional Tokenization Projects
Nasdaq has already begun testing the infrastructure needed to support Friedman’s vision. In September, the company announced that Vanguard and Wellington Management had completed tokenized collateral test transactions on the Canton Network. The demonstration involved tokenized money market fund shares used as collateral within Nasdaq’s Calypso risk-management platform. The system supported margin calculations, asset transfers and reconciliation, with settlement occurring in real time. The transactions demonstrated technical feasibility but did not represent a market-wide commercial rollout.
Nasdaq has also partnered with institutional digital-asset infrastructure provider Talos to integrate tokenized collateral management with established trading and risk systems. Meanwhile, its broader market-modernization strategy includes tokenized securities and extended trading availability. Friedman cautioned that continuous markets would require continuous liquidity, collateral monitoring and risk management. Moving securities more quickly does not eliminate the need to assess counterparty exposure or ensure sufficient market depth. Artificial intelligence could support those functions by helping institutions monitor risks and respond to changing conditions. The broader transition also depends on regulatory clarity and the willingness of financial institutions to adopt shared infrastructure. Tokenized securities must preserve enforceable ownership rights and operate within applicable market rules. For investors and institutions, the opportunity extends beyond cryptocurrency trading to the modernization of traditional financial markets. Nasdaq’s central proposition is that faster collateral movement could reduce idle capital, lower operational costs and improve the efficiency of existing financial resources. Whether those benefits reach the scale Friedman anticipates will depend on adoption, interoperability and measurable improvements in institutional settlement operations.
