Speaking at the TOKEN2049 event in Singapore, Nasdaq CEO Adena Friedman highlighted the potential of tokenization to significantly enhance efficiencies within financial markets. She emphasized that digital tokens representing assets like equities and bonds on blockchain could mobilize tens of billions of dollars currently languishing in the system.
Institutional Interest Gains Momentum
In a conversation with CNBC, Friedman noted a distinct rise in institutional interest over the past year. She attributed this trend to progressive regulatory frameworks such as the GENIUS Act in the U.S., designed to facilitate stablecoins. As institutional demand increases, the connectivity between traditional finance and digital asset markets becomes more pronounced.
Nasdaq CEO Adena Friedman stated, “Tokenization can streamline collateral movements for banks and financial institutions, with the potential to release tens of billions of dollars.”
Friedman also pointed out that the longstanding expectation among retail investors to trade around the clock further accelerates this transition. Adjusting the current market infrastructure to support 24/7 operations could necessitate complex technical upgrades. Artificial intelligence is anticipated to play a more significant role in real-time risk management.
This transformation in market structure highlights not only major financial institutions but also next-generation investor tools that track on-chain asset movements. In the meme token market, online trends can rapidly translate into million-dollar interests. For instance, a trade in Niu Lai transformed an initial $99 into approximately $370,000, demonstrating this market’s dynamism. Beyond price movements, monitoring when and which tokens investors are trading is becoming crucial. With features like social feed, investor rankings, and transaction alerts, the Fomo App consolidates token discovery and trading into a single platform.
Demand Extends Beyond the U.S.
Kraken Co-CEO Arjun Sethi also acknowledged increasing interest from companies outside the U.S. in tokenization and access to American capital markets. He remarked that this model could extend capital market accessibility to companies worldwide.
Kraken Co-CEO Arjun Sethi commented, “Companies outside the U.S. are showing interest in tokenization, which could expand global access to capital markets.”
Rapid Growth in Tokenized Stocks
According to Token Relations, the market value of tokenized stocks surged by 473% this year, reaching $3.75 billion. Among issuers, Ondo leads with $980 million, followed by xStocksFi at $954 million, and Binance bStocks at $877 million.
Securitize has issued tokenized equity worth $341 million to date. Its SECZ product alone represents the largest single tokenized stock at $328 million. Network-wise, BNB Chain leads with $1.19 billion, with Ethereum and Solana following at $832 million and $734 million, respectively.
Securitize launched its Securitize Stocks product on Solana on October 8, offering one-to-one supported on-chain ownership for 12 U.S. stocks, including Apple, Amazon, and Tesla. This development marks a shift from tokenized securities being a mere experimental space to reaching a broader investor audience.
