Nasdaq's CEO Says Tokenized Money Is the Key to Unlocking Tens of Billions in Trapped Capital. Here's What That Means for Crypto Investors.

Nasdaq CEO Adena Friedman believes that tokenizing money is crucial for unlocking tens of billions of trapped capital. Currently, Wall Street operates with banker hours, with the main trading session ending at 4 p.m. and weekends off. To change this, Nasdaq plans to start trading U.S. stocks 23 hours a day, five days a week starting December 6. The hard part, however, is beyond the extended trading hours - it's about real-time processing of money.

Traditional banks and brokers have relied on closed hours for system patching, batch processing, and risk calculations. In an always-on market, these downtime activities disappear. If a trade happens at midnight on Saturday, the cash must move immediately. To achieve this, Friedman proposes tokenizing money first, which means using stablecoins.

A stablecoin is a digital representation of a fiat currency, like the dollar, that maintains its value over time and can be transferred at any time. With tokenized money and assets, banks can pledge collateral for trades as fast as the trades themselves occur.

Friedman also credits the GENIUS Act, a 2025 stablecoin law, for paving the way. However, she does not expect traditional finance to fully adopt the crypto playbook. Instead, Wall Street is likely to incorporate crypto's accessories, such as stablecoin settlements and round-the-clock trading. The Clarity Act, another potential piece of legislation, remains uncertain.

Ultimately, while stablecoins won't make anyone rich directly, they could significantly impact the financial system by freeing up capital and streamlining trade processes.