Nasdaq CEO Adena Friedman on the New Era of the Stock Market

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  • Podcast: All-In Podcast
  • Hosts: Chamath Palihapitiya, Jason Calacanis, David Sacks, David Friedberg
  • Guest: Adena Friedman — CEO of Nasdaq
  • Duration: ~28 minutes
  • Listen: Apple Podcasts | YouTube

Nasdaq CEO Adena Friedman on the transformation of markets and the financial industry.

Nasdaq’s Three Businesses

Nasdaq has evolved from a simple marketplace into a global technology company with three pillars: (1) powering 17 of its own markets and 135 others globally, (2) powering the innovation economy through its index business ($700B in AUM), and (3) building trust through anti-financial crime and surveillance technology.

Tokenization Is Coming to Core Markets

Nasdaq plans to introduce tokenization directly into its main markets — not side experiments. The goal is to streamline post-trade processing and reduce friction. Tokenization is the next frontier in market evolution.

24/7 Trading

Nasdaq is moving toward 24/5 trading hours. Full 24/7 for equities is a future goal, but you need closure points for settlement and NAV calculations. It is more complex than crypto markets because of the underlying infrastructure.

The IPO Market Needs Reform

The burden of being public is too high. Companies stay private longer because disclosure requirements go beyond what is necessary for investors to make informed decisions. Friedman advocates for disclosure, proxy, and litigation reforms. She is optimistic about the new SEC Chair Atkins, whom she describes as “forward-leaning” and wanting to “make IPOs great again.”

Passive vs. Active

When the herd moves in one direction, it creates arbitrage opportunities for active managers. The balance between passive and active is essential for market health. Passive has made investing more accessible, but it also creates distortions that active managers can exploit.

Crypto and Regulatory Clarity

Nasdaq has been hesitant to enter crypto because it operates regulated markets. Going into an unregulated space with much higher risk tolerance is a different existence. Regulatory convergence between traditional and digital markets would allow Nasdaq to bring institutional clients into crypto while maintaining investor protection.

The Dollar Stays the Reserve Currency

Friedman is a “huge believer” in the dollar’s continued dominance. The U.S. economy is a powerhouse. Fed independence — a 250-year tradition — is crucial and must be preserved. The Fed is data-driven and apolitical.

Commercial Real Estate Risk

Concerns exist but are managed. Risk is distributed across thousands of banks, reducing systemic threats.

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