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Nasdaq to Acquire LeveL Markets in Push Into Tokenized,…

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Why Is Nasdaq Acquiring LeveL Markets?

Nasdaq has agreed to acquire LeveL Markets, the third-largest alternative trading system in the U.S. by trading volume, as it builds infrastructure for tokenized securities and markets that operate beyond traditional exchange hours. LeveL Markets processes hundreds of millions of shares each day and serves more than 2,500 buy- and sell-side clients. The platform executes trades across more than 7,000 symbols daily and works with more than 300 institutional buy-side firms. Its average daily trading volume increased 56% in 2025, giving Nasdaq an established institutional execution network rather than requiring the exchange operator to build one from scratch. Nasdaq first invested in LeveL Markets in 2021. Following the acquisition, the venue will remain a FINRA-regulated alternative trading system with its existing management team. Financial terms were not disclosed, and the transaction remains subject to regulatory approval. LeveL will become part of Nasdaq’s new Digital Liquidity Networks unit, led by Roland Chai, who has overseen the company’s digital asset strategy since earlier this year. The unit combines liquidity platforms, tokenization capabilities and digital asset technology.

How Does The Deal Fit Nasdaq’s Tokenization Strategy?

The acquisition extends a series of moves by Nasdaq to connect traditional securities markets with blockchain-based infrastructure. Nasdaq proposed in September 2025 that tokenized securities be allowed to trade on its exchange alongside conventional shares. An updated filing in January outlined a structure under which eligible stocks and exchange-traded products could trade in tokenized form, with Depository Trust Company handling tokenization and blockchain-based settlement through a three-year pilot program. The company expanded that work in March through a partnership with crypto exchange Kraken and tokenization firm Backed. The companies are developing infrastructure designed to connect traditional equities with blockchain networks. LeveL adds an institutional liquidity component to that strategy. Tokenized securities will still require deep order books, execution systems and connections to professional trading firms if they are to compete with established equity markets. Bringing an existing ATS into the group could allow Nasdaq to combine blockchain settlement technology with a venue already handling large volumes of traditional securities.

Investor Takeaway

Nasdaq is treating tokenization as a market infrastructure opportunity rather than simply a crypto product. Acquiring an institutional trading network gives it liquidity and client relationships that could become valuable if tokenized equities and extended-hours trading move into mainstream U.S. markets.

Why Are Exchanges Moving Toward Always-On Trading?

Nasdaq is not alone in preparing for markets that operate for longer periods. Cboe and the London Stock Exchange are pursuing extended trading initiatives, while the New York Stock Exchange is developing a separate platform intended to support 24/7 trading and onchain settlement of tokenized securities. The push reflects changing investor behavior. Cryptocurrency markets operate continuously, while retail and international investors increasingly expect access to U.S. securities outside the traditional trading session. The U.S. Securities and Exchange Commission has also begun examining the operational and regulatory consequences of longer trading hours. The agency has scheduled a Sept. 17 roundtable focused on the transition toward 24-hour U.S. equity trading. Moving equities toward continuous trading would require more than simply keeping exchanges open overnight. Clearing, settlement, market surveillance, liquidity provision and corporate action systems would all need to operate across longer windows. Tokenization could help automate parts of that infrastructure, although regulators will still need to determine how blockchain-based settlement fits within existing securities rules.

Can Tokenized Equities Become A Larger Market?

The tokenized equities sector remains small compared with conventional stock markets, but its value has expanded rapidly over the past year. Distributed value has risen more than sixfold to nearly $2.3 billion from about $381 million in August 2025, according to market data. That growth is attracting exchange operators that already control the trading, data and clearing relationships needed to serve institutional investors. Their involvement could move tokenized equities away from crypto-native platforms and toward regulated market infrastructure. Nasdaq’s advantage is that it can connect blockchain technology with existing relationships across brokers, asset managers and trading firms. LeveL adds another network of institutional participants to that model. The acquisition does not mean tokenized stocks will immediately become a major part of U.S. equity trading. But Nasdaq is assembling the technology and liquidity infrastructure before those markets reach scale. If tokenized securities and round-the-clock trading continue to grow, LeveL could become more valuable as a bridge between Nasdaq’s conventional execution business and its emerging digital market infrastructure.