Nasdaq has agreed to acquire LeveL Markets, the third-largest alternative trading system in the U.S. by trading volume, as part of a broader strategy to build infrastructure for tokenized securities and round-the-clock markets. The move comes as the SEC is poised to advance its own regulatory framework, potentially unveiling an exemption that would allow 24/7 blockchain-based trading of tokenized stocks.
LeveL Markets processes hundreds of millions of shares daily, serves over 2,500 buy- and sell-side clients, and executes trades across more than 7,000 symbols. Its average daily trading volume surged 56% in 2025, giving Nasdaq an instant institutional execution network. After initially investing in LeveL in 2021, Nasdaq will now fold the venue into its newly formed Digital Liquidity Networks unit, led by Roland Chai, while maintaining its FINRA-regulated ATS status and existing management.
The acquisition extends Nasdaq’s tokenization roadmap. In September 2025, the exchange proposed trading tokenized securities alongside conventional shares, and an updated filing in January outlined a three-year pilot involving Depository Trust Company for tokenization and blockchain settlement. A subsequent partnership with Kraken and tokenization firm Backed focused on connecting traditional equities to blockchain networks. LeveL adds the missing piece of institutional liquidity and order-book depth required to make tokenized equities viable.
On the regulatory front, the SEC is preparing to discuss a tailored exemption for tokenized securities trading as early as Friday, according to reports. The agency’s initiative could empower public companies to object to unauthorized tokenization of their shares and introduce enhanced anti-money laundering safeguards. This shift toward structured oversight is seen as a catalyst for mainstream adoption of tokenized assets, which have already grown sixfold in the past year to nearly $2.3 billion in distributed value.
Nasdaq is not alone in pursuing always-on markets. Cboe, the London Stock Exchange, and the New York Stock Exchange are all exploring extended trading and onchain settlement. The SEC itself has scheduled a September 17 roundtable on 24-hour equity trading, signaling a regulatory appetite for modernization. Combining an existing high-volume trading network with emerging tokenization technology positions Nasdaq to capture institutional demand if tokenized equities gain broader acceptance.
