Nasdaq Acquires LeveL Markets to Advance Tokenized Asset Push
Nasdaq agrees to buy LeveL Markets, the third-largest US ATS, to expand its digital assets unit amid a sixfold surge in tokenized equities. The deal, pending regulatory approval, adds LeveL's institutional network to Nasdaq's push for programmable, 24/7 markets, following its proposed tokenized securities pilot.
Quick Take
Nasdaq acquires LeveL Markets, third-largest ATS, to boost tokenized assets unit.
Tokenized equities market surged to $2.5B, sixfold growth since August 2025.
Deal follows Nasdaq's SEC proposal for tokenized securities pilot with DTC settlement.
SEC roundtable on 24-hour trading signals regulatory momentum.
Market Impact Analysis
BullishNasdaq's acquisition of a major ATS strengthens its tokenization infrastructure, signaling institutional commitment to digital assets and 24/7 markets, which could accelerate adoption of tokenized securities.
Speculation Analysis
Key Takeaways
- Nasdaq acquires LeveL Markets, third-largest US ATS, to strengthen tokenized asset infrastructure.
- Tokenized equities market value surged sixfold to $2.5B since August 2025.
- Acquisition adds LeveL's institutional network to Nasdaq's push for programmable, 24/7 trading.
- SEC roundtable on 24-hour trading signals regulatory momentum toward round-the-clock equities.
What Happened
Nasdaq agreed to acquire LeveL Markets, the third-largest alternative trading system in the US by volume. The deal brings LeveL's institutional execution network into Nasdaq's Digital Liquidity Networks unit, accelerating its strategy for tokenized and always-on markets. LeveL processes hundreds of millions of shares daily across more than 7,000 symbols and serves over 2,500 buy- and sell-side clients. The acquisition, subject to regulatory approval, will see LeveL remain a FINRA-regulated ATS with its own management. Nasdaq first invested in the platform in 2021, and the business has since grown average daily trading volume by 56% this year.
The Numbers
The tokenized equities market has exploded, with distributed value rising to nearly $2.5 billion from $381 million in August 2025—a sixfold increase. LeveL Markets handles hundreds of millions of shares daily, serving more than 2,500 clients. Nasdaq proposed a three-year pilot in January 2026 to trade tokenized securities alongside traditional shares, using DTC for settlement. The rapid growth and LeveL's scale underscore the urgency for traditional exchanges to build digital infrastructure.
Why It Happened
Nasdaq's move reflects the broader industry shift toward 24/7 trading and blockchain-based settlement. Tokenized assets are gaining traction, with institutional demand driving volumes. The SEC's upcoming roundtable on 24-hour equity trading signals regulatory openness. By acquiring LeveL, Nasdaq gains an established execution network to complement its digital assets technology, positioning it ahead of rivals like Cboe and NYSE, which are also exploring longer trading hours and onchain settlement.
Broader Impact
The acquisition cements Nasdaq's commitment to tokenization, potentially accelerating the adoption of programmable securities. Competitors are likely to follow suit, intensifying the race for always-on markets. The deal could also influence SEC policy, as the pilot program and roundtable suggest a regulatory framework is taking shape. For institutional investors, the integration could lower barriers to accessing tokenized equities, merging traditional finance with crypto rails.
What to Watch Next
- SEC roundtable on 24-hour trading on Sept 17—potential policy clues.
- Approval timeline for the LeveL acquisition.
- Progress of Nasdaq's tokenized securities pilot and DTC integration.
This article is for informational purposes only and does not constitute financial advice.
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