According to reports from Consensus in Miami, Nasdaq President Tal Cohen described a significant transformation in the U.S. Securities and Exchange Commission's approach to crypto regulation. Cohen stated that the industry now feels it can 'build' again after years of regulatory uncertainty, with the 'gray zone four years ago' being a 'no-fly zone' compared to the current environment where 'we can build, we can gain some scale, we can experiment without maybe any brush back.'
As reported by Consensus, Nasdaq is investing in 'always on' market infrastructure, tokenization and artificial intelligence as part of a broader transition toward continuous trading systems. Cohen emphasized the company's focus on 'convergence' between traditional financial rails and digital asset systems, stating that the exchange is 'embracing two trends' - always on market infrastructure and convergence between traditional and digital systems. The company, which provides trading technology to more than 130 markets globally, is positioning itself to handle both traditional securities and tokenized assets simultaneously.
According to Cohen's remarks at Consensus, Nasdaq is testing AI systems designed to simulate trading activity in a digital replica of its matching engine. The AI technology is being developed to help the exchange test market stress scenarios and improve software reliability as markets move toward extended trading hours. Cohen described this as part of the company's strategy to support 'always on' trading systems that operate nearly around the clock and move money, securities and collateral faster than traditional infrastructure.
As reported by Consensus, Cohen identified interoperability between legacy and digital platforms as one of the largest hurdles facing the industry. He explained that firms do not want to operate separate infrastructures for traditional securities and tokenized assets, stating that 'whether you're in the existing world or you're in the digital world, let me tell you, I'm bringing it all together for you so you get the benefits of both.' Cohen described this as a key focus area for Nasdaq's development efforts.
According to Cohen's comments at Consensus, tokenization could eventually make assets easier to move, finance and trade while providing issuers with better insight into shareholders. He described tokenization as 'taking an asset and putting it in motion,' emphasizing its potential to transform how financial assets are managed and traded in the digital economy. This represents Nasdaq's vision for how blockchain technology can integrate with traditional financial markets.
