Nasdaq CEO Adena Friedman Outlines 3 Ways Blockchain Can Fix Finance

Nasdaq CEO Adena Friedman envisions blockchain reshaping the traditional financial system in three key areas: overhauling post-trade infrastructure, unlocking trapped capital through better collateral mobility, and enabling faster, more seamless payments. Speaking alongside Ripple President Monica Long at the Swell conference in New York, Friedman stated, “There’s just so much capital trapped, whether it’s in clearinghouses or clearing brokers. If we do it right, we can actually make that an opportunity to deliver more capital to the system.”

Friedman highlighted that post-trade processes — crucial for finalizing and settling securities transactions — are deeply fragmented and rely on outdated infrastructure. While some complexities are necessary for risk management and allocation tracking, much of the friction is unnecessary. She suggested that blockchain technology could unify and streamline these workflows, reducing inefficiencies that currently tie up capital and slow down financial activities.

The second key opportunity lies in improving the movement and management of collateral — the assets pledged in trading and lending transactions to mitigate risk. Friedman emphasized that digital assets could enable faster transfers of collateral across platforms and borders. She stated, “What we really love about the idea of digital assets is being able to move that collateral. We can create a collateral mobility effort and… free a lot of capital.”

Friedman identified payments as another area ripe for transformation. While Nasdaq doesn't operate directly in the payments sector, she stressed the importance of smoother, more efficient systems to reduce friction in global markets. Describing current payment infrastructure as a bottleneck, she explained how blockchain could unlock significant amounts of trapped capital by enabling easier fund transfers across platforms, borders, and asset classes. According to Friedman, this would make the financial system more open and efficient for investors.

Nasdaq is already taking steps to integrate blockchain into its operations. The company recently filed with the U.S. Securities and Exchange Commission to support trading of tokenized securities. Under the proposed system, an investor could flag a trade for tokenized settlement, allowing the post-trade system — including clearinghouse DTCC — to route the transaction and deliver assets into a digital wallet. This approach preserves the core structure of existing securities markets while giving investors greater flexibility.

Friedman emphasized that Nasdaq's goal isn’t to replace or fragment U.S. equity markets, which she described as “extremely resilient” and “highly liquid”. Instead, the aim is to enhance these markets by reducing friction and improving investor choice through the use of advanced technologies. She noted that while tokenized markets may initially focus on post-trade functions, the technology has the potential to eventually reshape how securities are issued and traded. “Let’s keep all those great things [about the U.S. markets], and then let’s put the technology in where we can actually reduce friction,” Friedman concluded.