Nasdaq CEO Adena Friedman sees blockchain reshaping the traditional financial system in three key ways: by overhauling post-trade infrastructure, freeing up locked-up capital through better security mobility, and enabling faster, more seamless payments.
“There’s just so much capital trapped, whether it’s in clearinghouses or clearinghouses,” Friedman said during a discussion with Ripple president Monica Long at the Swell conference in New York on Tuesday. “If we do it right, we can actually turn it into an opportunity to provide more capital to the system.”
Post-trade processes—the systems that finalize and settle securities transactions—remain deeply fragmented and often rely on decades-old infrastructure. Friedman noted that while some complexity is intentional, often for reasons such as risk management or allocation tracking, much of the friction is unnecessary. She believes blockchain can help unify and streamline these workflows and cut down on inefficiencies that tie up capital and slow down financial activity.
The other major opportunity lies in improving how financial institutions move and manage collateral—the assets pledged in trading and lending transactions to mitigate risk. According to Friedman, digital assets could make it easier to transfer security quickly across platforms and borders. “What we really love about the idea of digital assets is being able to move that security,” she said. “We can create a security mobility effort and … free up a lot of capital.”
Payments is the third area ripe for change. While Nasdaq does not operate in the payments sector, Friedman stressed that smoother, more efficient payment systems are key to allowing investors to participate in global markets without friction.
She described today’s payment infrastructure as a bottleneck that slows the flow of capital. If these systems could be improved or rebuilt using blockchain, she said, it could unlock significant amounts of capital currently tied up in outdated processes. This in turn will help investors move funds more easily across platforms, borders and asset classes – making the financial system more open and efficient.
Nasdaq has already started laying the groundwork. The exchange operator recently filed an application with the US Securities and Exchange Commission to support trading of tokenized securities. Under the proposed framework, an investor could mark a trade for tokenized settlement and the post-trade system – including clearinghouse DTCC – would route it accordingly, enabling delivery to a digital wallet. This approach, Friedman said, maintains the core structure of existing securities while offering investors greater flexibility.
She was quick to point out that the goal is not to replace or fragment U.S. stock markets, which she described as “extremely resilient” and “very liquid,” but to enhance them by layering technology that reduces friction and improves investor choice.
Tokenized markets may begin in post-trade functions, she said, but could ultimately reshape how securities are issued and traded. “Let’s keep all the big stuff [about the U.S. markets]and then let’s put the technology in where we can actually reduce the friction.”
