Nasdaq CEO Outlines 3 Ways Blockchain Can Fix Finance

Nasdaq CEO Adena Friedman discussed how blockchain technology can significantly transform traditional finance in three key areas: post-trade infrastructure, collateral mobility, and payment systems. She highlighted that the current post-trade processes are highly fragmented and often reliant on outdated infrastructure, suggesting that blockchain could unify and enhance these workflows, leading to reduced inefficiencies and increased capital flow. Friedman further explained how digital assets could facilitate quicker collateral transfers across platforms and borders, aiding in risk management and freeing up capital that is typically locked in clearinghouses. On the payments front, she noted that improving payment systems with blockchain could ease global market participation for investors, eliminating current bottlenecks. Nasdaq is currently working in collaboration with the SEC to enable the trading of tokenized securities, which aims to enhance existing market structures without replacing them, providing investors with improved flexibility and efficiency.

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