Nasdaq Acquires LeveL Markets, Boosts Push for Always-On Tokenized Securities
Vexoda Newsroom
Nasdaq has acquired the third-largest US alternative trading system to expand its digital liquidity networks and tokenization capabilities. The move aims to support longer trading hours and programmab
Nasdaq is expanding its presence in the cryptocurrency market by acquiring LeveL Markets, a leading alternative trading system (ATS) with significant daily trading volume. This acquisition comes as Nasdaq seeks to enhance its digital liquidity networks and tokenization capabilities, aligning with broader industry trends toward always-on markets.
The deal involves integrating LeveL Markets into Nasdaq’s Digital Liquidity Networks unit under the leadership of Roland Chai, who has been overseeing the company's digital assets strategy. LeveL Markets processes hundreds of millions of shares daily and serves over 2,500 clients across various financial instruments, including tokenized securities.
Background on this move includes Nasdaq’s initial investment in LeveL Markets back in 2021. Since then, the platform has grown to execute trades for more than 7,000 symbols daily and support over 300 institutional clients, with a significant increase in average daily trading volume of 56% by 2025.
Nasdaq’s push into tokenized securities is part of its broader strategy to offer programmable markets that operate continuously. The acquisition aligns with the SEC's recent initiatives and other exchanges’ efforts towards longer trading hours, such as Cboe and the London Stock Exchange, which are also exploring 24/7 operations.
The significance of this move lies in Nasdaq’s ability to leverage LeveL Markets' institutional execution network for its expanding tokenized securities business. This could potentially enhance liquidity and provide a more robust trading environment for both traditional and digital assets.
Traders should monitor how the integration affects market dynamics, particularly as it relates to tokenization and continuous trading hours. The broader implications include increased competition in the ATS space and potential changes in regulatory oversight.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.