Nasdaq agreed on Aug. 11 to acquire all equity interests in LeveL Markets LLC, adding one of the largest U.S. alternative trading systems to a broader strategy built around longer trading hours, tokenized securities and digital market infrastructure.
Summary
- Nasdaq agreed to acquire LeveL Markets, the third largest U.S. alternative trading system by volume.
- LeveL reaches more than 2,500 clients and trades across more than 7,000 symbols each day.
- Nasdaq created Digital Liquidity Networks to combine tokenization, liquidity platforms and digital asset technology capabilities.
- The SEC approved Nasdaq tokenized securities rules in March, then longer trading hours during April.
- LeveL will remain FINRA regulated and separately managed after closing, subject to required regulatory approvals.
Financial terms were not disclosed in the company’s release.
The deal comes after two major U.S. regulatory approvals for Nasdaq this year. The SEC approved its tokenized securities rules in March and its plan for 23 hour weekday trading in April. Nasdaq now plans to launch the longer trading schedule on Dec. 6, while the newly created Digital Liquidity Networks unit will bring LeveL into the same organization as its digital asset and tokenization capabilities.
LeveL gives Nasdaq a larger U.S. off exchange foothold
Nasdaq says LeveL is the third largest U.S. ATS by trading volume. The platform processes hundreds of millions of shares each day, trades more than 7,000 symbols and reaches over 2,500 buy side and sell side clients. More than 300 institutional buy side firms use the venue, which connects through more than 15 order and execution management systems.
Nasdaq first acquired a minority interest in LeveL in 2021. LeveL later merged with Luminex in 2022, while its average daily volume increased 56% in 2025. Nasdaq’s move from minority investor to prospective owner gives the exchange operator a larger position in U.S. trading that takes place away from traditional exchange order books.
The structure will not disappear after the purchase. Nasdaq said LeveL will keep its own management team, participant confidentiality and structural separation while remaining a registered ATS under FINRA oversight. Until the transaction closes, both businesses will continue operating independently.
Nasdaq already has SEC approval for 23 hour trading
The U.S. angle extends beyond the acquisition. The SEC granted accelerated approval to Nasdaq’s 23 hour, five day trading proposal on April 10. Under the approved structure, the day session runs from 4 a.m. until 8 p.m. ET, followed by a night session from 9 p.m. until 4 a.m. ET. The intervening hour allows maintenance and corporate action processing.
Nasdaq has set Dec. 6, 2026, as its planned launch date for the expanded hours. The change is intended to give investors in other time zones greater access to U.S. equities and puts a major national exchange into trading periods where ATS operators already compete for orders.
Washington is still examining how far the transition should go. The SEC will hold a Sept. 17 roundtable covering overnight trading, market operations, resiliency and investor safeguards. Chair Paul Atkins said the U.S. is moving toward a market that trades through more of the day and night. As crypto.news reported in its 24 hour trading coverage, regulators are now examining the infrastructure needed to support that shift.
Tokenized securities are moving closer to production
Nasdaq’s digital market strategy is also moving from regulatory approval toward implementation. On March 18, the SEC approved rules allowing eligible securities to trade in tokenized form on Nasdaq. Tokenized and traditional versions can use the same order book and execution priority when they share the same CUSIP, trading symbol and shareholder rights.
The approved framework relies on DTC infrastructure rather than creating a separate pool of synthetic equity exposure. Eligible assets under the pilot include Russell 1000 securities and ETFs tracking major indexes. Trades handled through DTC will continue to settle on a T+1 basis, according to Nasdaq’s regulatory filing.
That infrastructure is approaching another milestone. DTCC processed live production transactions involving DTC tokenized assets on July 15 with more than 30 firms and is targeting October for the Tokenization Service launch. In related DTCC tokenization coverage, crypto.news reported that participants will be able to move eligible securities between traditional records and approved blockchain wallets.
Nasdaq is separately working with Payward, Kraken’s parent company, on an xStocks powered gateway designed to connect regulated equity markets with blockchain networks in eligible jurisdictions. As previously reported in Nasdaq and xStocks partnership coverage, the companies are developing infrastructure linking permissioned markets with blockchain based financial applications.
What happens next for Nasdaq and LeveL Markets
The LeveL acquisition remains subject to customary closing conditions and required regulatory approvals. Nasdaq has not disclosed the purchase price or a target closing date. After completion, LeveL is expected to sit inside Digital Liquidity Networks, led by Roland Chai, who has overseen Nasdaq’s digital assets strategy since early 2026.
Chai said the unit intends to build “programmable, always-on market infrastructure of the future.” That is Nasdaq’s stated objective rather than an existing market structure. The company said DLN will combine liquidity platforms, tokenization capabilities and technology products serving digital asset markets.
Several concrete dates will test that strategy. The SEC’s roundtable is scheduled for Sept. 17. DTCC plans to launch its tokenization service in October. Nasdaq plans to begin 23 hour weekday trading on Dec. 6, while its separate equity token design and related distributed ledger services are expected to begin operating in the first half of 2027.
Those initiatives are separate from the LeveL acquisition and are not disclosed closing conditions for the deal. Together, however, they show Nasdaq directing investment toward off exchange liquidity, longer U.S. trading hours and blockchain based settlement as the structure of American equity markets changes.
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