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Nasdaq CEO: Tokenization Could Free Tens of Billions in Trapped Capital

Summarized from US Top News and Analysis

Nasdaq CEO Adena Friedman says blockchain-based tokenization has the potential to unlock tens of billions in illiquid capital.

Nasdaq CEO: Tokenization Could Free Tens of Billions in Trapped Capital

Nasdaq Chief Executive Adena Friedman has identified tokenization as a technology capable of releasing tens of billions of dollars in capital that currently sits locked in illiquid assets, according to remarks reported by US Top News and Analysis.

Tokenization refers to the process of representing real-world assets — such as private equity stakes, real estate, or bonds — as digital tokens on a blockchain. By digitizing ownership rights in this way, assets that are traditionally difficult to buy or sell can be traded more freely, potentially broadening investor access and increasing market efficiency.

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Friedman's comments carry weight given Nasdaq's position as one of the world's leading exchange operators. Her framing of tokenization as a mechanism for unlocking trapped capital suggests growing institutional confidence that blockchain infrastructure is maturing beyond speculative use cases toward practical financial applications.

The remarks also arrive at a moment when regulators, exchanges, and asset managers globally are actively evaluating how tokenized assets fit within existing legal and settlement frameworks. Major financial institutions have piloted tokenization projects in recent years, though widespread adoption remains in early stages.

The scale cited — tens of billions of dollars — underscores the argument that illiquidity in private markets represents a meaningful drag on capital deployment, and that technology-driven solutions may offer a path to more dynamic allocation. Continue reading at US Top News and Analysis.

Frequently Asked Questions

Q.What is tokenization in finance?

Tokenization is the process of converting ownership rights in real-world assets — such as real estate, bonds, or private equity — into digital tokens on a blockchain, making them easier to buy, sell, and transfer.

Q.How much capital could tokenization unlock according to Nasdaq's CEO?

Nasdaq CEO Adena Friedman said tokenization has the potential to free up tens of billions of dollars in capital that is currently trapped in illiquid assets.

Q.Why is tokenization considered important for capital markets?

Tokenization can increase liquidity in markets that are traditionally hard to access, potentially broadening investor participation and improving the efficiency of capital deployment across private and public markets.

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