Nasdaq has agreed to acquire LeveL Markets, a major US alternative trading system (ATS), as the exchange operator moves deeper into tokenized and “always-on” trading infrastructure. The deal combines Nasdaq’s push for programmable market structures with LeveL’s institutional execution network, positioning the assets under Nasdaq’s Digital Liquidity Networks unit.
Under the terms announced Tuesday, LeveL Markets will keep operating as a FINRA-regulated ATS with its own management team after the acquisition. Financial details were not disclosed, and the transaction remains subject to regulatory approval.
Key takeaways
- Nasdaq will add LeveL Markets’ institutional execution network to its Digital Liquidity Networks initiative focused on tokenization and always-on trading.
- LeveL will remain FINRA-regulated as an ATS, preserving its regulatory status and management structure post-acquisition.
- The agreement follows Nasdaq’s earlier investment in LeveL (made in 2021) and builds on LeveL’s growth in multi-symbol execution.
- Nasdaq’s acquisition aligns with broader industry moves toward longer trading hours and tokenized equity settlement pilots.
Why Nasdaq wants LeveL Markets
Nasdaq says LeveL Markets handles “hundreds of millions” of shares daily and supports more than 2,500 buy- and sell-side clients. The venue operates across more than 7,000 symbols each day, and Nasdaq credits LeveL’s expansion to increased institutional usage—stating it serves more than 300 institutional buy-side firms and that average daily trading volume rose by 56% in 2025.
The acquisition matters for traders and liquidity providers because ATS infrastructure often determines how quickly and efficiently orders are routed and executed across market participants. By folding LeveL into a dedicated digital unit, Nasdaq is effectively tying execution capacity to its larger ambition: building market plumbing that can support tokenization, programmable settlement, and a more continuous trading experience.
LeveL stays an ATS—at least for now
Nasdaq emphasized that LeveL Markets will continue to operate as a FINRA-regulated ATS following the acquisition. It will also keep its own management team, suggesting Nasdaq wants to preserve operational continuity while integrating the network into its broader digital strategy.
Nasdaq will run the combined effort within its Digital Liquidity Networks unit, led by Roland Chai. Nasdaq also noted that Chai has been overseeing its digital assets strategy since earlier this year, placing tokenization and next-generation market design inside a single execution-focused organization.
While financial terms were not shared, the transaction’s stated dependency on regulatory approval is important. Because ATS operations and cross-market integration can raise oversight questions, the final structure will likely determine how quickly both companies can translate their combined capabilities into live tokenized or extended-hour execution use cases.
Nasdaq’s tokenized markets roadmap and the SEC’s moving target
Nasdaq’s interest in LeveL arrives alongside multiple regulatory and product efforts aimed at tokenized equities and longer trading sessions.
According to filings and updates cited by Nasdaq, the exchange first proposed a framework allowing tokenized securities to trade on its exchange in September 2025. A January 2026 SEC filing updating the proposal states that eligible stocks and exchange-traded products could be traded in tokenized form alongside traditional shares, with Depository Trust Company handling tokenization and blockchain-based settlement through a three-year pilot program. (These details are based on SEC documents referenced in the announcement.)
Nasdaq also pointed to a March partnership effort involving Payward (which operates as Kraken), along with tokenization firm Backed, to develop infrastructure intended to link traditional equities markets with blockchain networks.
Beyond Nasdaq, other market operators are reportedly pursuing similar shifts. Cointelegraph earlier noted that Cboe and the London Stock Exchange are pursuing plans for longer trading hours, while the New York Stock Exchange is developing a separate platform for 24/7 trading and onchain settlement of tokenized securities. Those parallel initiatives suggest competition not only for liquidity but for the technical standards that govern how tokenized assets can be traded and settled.
In July, the SEC announced a September 17 roundtable focused on the shift toward 24-hour US equity trading. Cointelegraph’s coverage of the announcement referenced SEC chair Paul Atkins saying, “We are moving towards a new day – and night – in the US equity markets.” That backdrop reinforces why execution network capacity, not just tokenization software, has become a strategic priority for large venues.
Tokenized equities are growing—now execution networks are the bottleneck
Nasdaq framed the LeveL acquisition as part of its push toward programmable, “always-on” markets. It also tied the strategy to broader growth indicators for tokenized equities.
In the past year, Cointelegraph-referenced data from RWA.xyz suggests tokenized equities expanded more than sixfold. The report indicated distributed value rising to nearly $2.5 billion today from around $381 million in August 2025. While that figure is not a measure of how much of that trading occurs on any single venue, it underscores that the category is moving from concept to measurable capital allocation.
As tokenized equities attract more participants, the operational question becomes whether order routing, market-making participation, settlement mechanics, and compliance workflows can handle continuous or near-continuous trading at scale. That is the gap Nasdaq appears to be trying to close by pairing LeveL’s institutional execution network with its digital infrastructure capabilities.
For investors and market participants, the key issue to watch is not only whether tokenized products can be issued and settled, but whether liquidity can be sustained across trading hours—especially as “always-on” narratives meet the realities of regulation, counterparty risk, and operational readiness.
With the acquisition awaiting regulatory approval, the next milestones to track are the integration plan for LeveL Markets inside Nasdaq’s Digital Liquidity Networks unit and how Nasdaq’s tokenized trading proposal and pilots progress alongside broader SEC engagement on 24-hour equities. Those steps will determine how quickly tokenized markets move from growth in distributed value to reliably distributed liquidity.
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