Nasdaq CEO Outlines 3 Ways Blockchain Can Fix Finance

Nasdaq CEO Adena Friedman discussed how blockchain can transform traditional finance by streamlining post-trade systems, enhancing collateral mobility, and improving payment processes. Friedman highlighted that outdated post-trade systems often trap capital, exacerbating inefficiencies. By integrating blockchain technology, these systems could be unified to enable faster transactions and reduce friction in financial operations. Another critical area is collateral management; blockchain could facilitate quicker and easier transfer of collateral, thus liberating capital tied in clearinghouses. Although Nasdaq is not in the payment sector, Friedman noted that blockchain could create seamless global payment solutions, boosting capital movement across borders and asset classes. Nasdaq is already collaborating with the SEC to promote trading of tokenized securities, aiming to enhance existing markets with blockchain technology. This approach focuses not on replacing the current market but on improving efficiency and investor flexibility, with tokenized markets initially transforming post-trade functions.

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