Stock Exchange Nasdaq Reports Historic Earnings from Cash-Based Equities and Derivatives Trading
In the rapidly evolving world of finance, Nasdaq is leading the charge, leveraging artificial intelligence (AI) and digital assets to drive growth and innovation. According to Adena Friedman, the company's CEO, this strategic shift is central to Nasdaq's growth plans for 2025 and beyond.
In the second quarter of 2025, Nasdaq's index business recorded net inflows of $88 billion over the trailing twelve months. This is accompanied by a 17% increase in index revenue to $196 million in Q2 2025. The company's focus on AI is evident in the development of AI-powered compliance tools, which enhance Nasdaq's regulatory technology offerings and client engagement.
Nasdaq is also expanding internationally, with platforms like Verafin, which leverage AI to combat financial crime. This focus on digital asset security and fraud prevention is indicative of the company's strategic move into digital asset markets.
The company is also advancing the tokenization of private assets, reflecting a strategic move into digital asset markets designed to broaden market access and liquidity. AI is seen as a "real opportunity" in streamlining IPO processes and attracting new companies public, as well as engaging retail investors who are increasingly active, partly fueled by AI-driven market dynamics.
Fintech and market services driven by AI and digital asset capabilities contribute materially to Nasdaq’s fintech and index franchise growth, with cross-selling to new and existing clients accelerating revenue.
Nasdaq exchanges in Europe had 10 new listings which raised five times more capital than the first half of last year. The company's second quarter net revenue was $1.3 billion, an increase of 13% over the same period last year. This growth is also visible in the financial technology revenue, which stood at $464 million in Q2 2025, a 10% increase over the same quarter last year.
Nasdaq's Closing Cross successfully executed 2.5 billion shares in 0.871 seconds during the Russell reconstitution, representing a record $102.5 billion in notional value. This impressive feat underscores Nasdaq's technological prowess and its ability to handle high-volume transactions efficiently.
The institutionalization of digital assets presents another opportunity for Nasdaq. As a provider of technology to traditional markets, Nasdaq is well-positioned to help these markets digitize assets from creation to settlement, custody, and collateral management.
Nasdaq is heavily engaged with U.S regulators and legislators in the development of a market structure bill for digital assets. This active participation underscores Nasdaq's commitment to shaping the future of digital asset markets and ensuring regulatory compliance.
In conclusion, under Adena Friedman's leadership, Nasdaq is leveraging AI and digital assets not only to enhance compliance and risk management but also to expand into new markets, improve client services, and innovate capital market infrastructure. These technologies are central pillars in Nasdaq’s strategic growth plans for 2025 and beyond.
- Nasdaq's strategic shift, including the leverage of artificial intelligence (AI) and digital assets, is central to the company's growth plans for 2025 and beyond, as stated by Adena Friedman, the company's CEO.
- The company's focus on AI is evident in the development of AI-powered compliance tools, which enhance Nasdaq's regulatory technology offerings and client engagement.
- Nasdaq is also advancing the tokenization of private assets, reflecting a strategic move into digital asset markets designed to broaden market access and liquidity.
- Fintech and market services driven by AI and digital asset capabilities contribute materially to Nasdaq’s fintech and index franchise growth, with cross-selling to new and existing clients accelerating revenue.
- As a provider of technology to traditional markets, Nasdaq is well-positioned to help these markets digitize assets from creation to settlement, custody, and collateral management, presenting another opportunity for Nasdaq with the institutionalization of digital assets.
