Nasdaq acquires LeveL Markets in push toward tokenized trading

Nasdaq has agreed to acquire LeveL Markets, the third-largest alternative trading system in the US, to accelerate its push into tokenized and always-on markets. The acquisition aligns with a broader Wall Street shift toward blockchain-based plumbing, where major banks like Wells Fargo, JPMorgan, and Citigroup are deploying tokenized deposits, and the DTCC is launching live tokenized securities settlement. Backed by supportive SEC pilot approvals, the market for distributed tokenized assets has reached $37.7 billion, with projections estimating tokenized securities could scale to $5.5 trillion by 2030.

Nasdaq acquisition of LeveL Markets

• ▪Nasdaq agreed to acquire LeveL Markets, the third-largest alternative trading system (ATS) in the United States by trading volume, to expand its role in equity and tokenized markets.
• ▪Nasdaq first invested in LeveL Markets in 2021, and the platform grew to execute trades across more than 7,000 symbols daily with a 56% increase in average daily trading volume in 2025.
• ▪LeveL Markets will operate within Nasdaq's new Digital Liquidity Networks unit, led by Roland Chai, and will remain a FINRA-regulated ATS with its own management team.

Major bank tokenization initiatives

• ▪JPMorgan's Kinexys network processes more than $7 billion daily and has handled over $4 trillion in transactions since its launch.
• ▪The Clearing House is operating an initiative with Wells Fargo, JPMorgan, Citigroup, Bank of America, and over a dozen other lenders to develop a shared system for moving tokenized deposits between institutions.
• ▪Wells Fargo announced it will offer tokenized deposits to corporate and commercial clients in the fall of 2026, joining competitors JPMorgan and Citigroup in offering blockchain-based deposit services.

Blockchain settlement mechanics

• ▪Blockchain-based settlement allows the security and the purchasing funds to change hands at the same instant, eliminating settlement exposure but potentially requiring firms to fund each trade in full rather than netting them.
• ▪The Depository Trust & Clearing Corporation processed its first live transactions using tokenized securities in July 2026 and plans to launch the service commercially in October 2026.

Nasdaq tokenized securities filings

• ▪In March 2026, Nasdaq partnered with cryptocurrency exchange Kraken and tokenization firm Backed to develop infrastructure linking traditional equities with blockchain networks.
• ▪Nasdaq proposed allowing tokenized securities to trade on its exchange in September 2025, updating the proposal in a January 2026 SEC filing to outline a three-year pilot program with the Depository Trust Company.
• ▪In March 2026, the SEC approved Nasdaq rules allowing eligible tokenized securities to trade alongside conventional counterparts during the Depository Trust Company pilot program.

Tokenized securities market growth

• ▪The tokenized equities market grew more than sixfold over the year preceding August 2026, with distributed value rising to nearly $2.5 billion from approximately $381 million in August 2025, according to RWA.xyz data.
• ▪As of August 6, 2026, RWA.xyz tracked approximately $37.7 billion of distributed tokenized assets, with U.S. Treasury products accounting for $16.1 billion of the total.
• ▪Citigroup estimates that tokenized securities could reach approximately $5.5 trillion by 2030, while Boston Consulting Group and ADDX project the market for tokenized illiquid assets could reach $16.1 trillion by 2030.