21X and LeveL Markets Partner to Connect TradFi Workflows With Tokenized Trading
21X and LeveL Markets have announced a strategic partnership aimed at expanding institutional access to tokenized capital markets trading by linking traditional equity workflows with wallet-based trading and settlement rails.
Under the agreement, LeveL Markets will connect its institutional trading ecosystem to 21X, which the firms describe as “the world’s first fully regulated DLT-based trading and settlement system (TSS).” The goal is to offer digital trading services that allow professional market participants to access tokenized financial instruments without rebuilding existing execution infrastructure.
The companies are positioning the partnership as a practical interoperability step: embedding tokenized market access into the identical tools, protocols and operating models institutions already use, rather than forcing a clean-slate migration to crypto-native systems.
Bridging Institutional Equity Trading With Wallet-Based Rails
Tokenization has been promoted for years as a path to quicker settlement, lower costs and more efficient market infrastructure. But for institutional firms, the operational burden of adopting new rails has often outweighed the theoretical benefits—particularly when it requires changes to , compliance workflows and post-trade operations.
21X and LeveL Markets are explicitly targeting that friction point. The firms said their integration will “remove operational and technical friction that has historically limited markets,” enabling access “without forcing firms to re-architect their existing trading stacks.”
Through the collaboration, LeveL Markets’ institutional customers will be able to access tokenized instruments “alongside their existing equity workflows.” That phrasing is significant: the partnership is not pitching tokenization as a replacement for equities trading infrastructure, but as an extension layer that can sit inside current institutional execution models.
Over time, the companies say the approach is intended to build “a foundation for future interoperability,” supporting “a more , where traditional securities and tokenized assets can increasingly co-exist within familiar institutional frameworks.”
Takeaway
21X Says Institutions Want Tokenization Without Re-Engineering
21X CEO Max Heinzle framed the partnership as a direct response to institutional demands for usability. Rather than asking traders to move to new systems, 21X aims to embed wallet-based rails inside established institutional trading operations.
“Institutions want the benefits of tokenization without re-engineering their entire trading stack,” Heinzle said. “By partnering with LeveL Markets, we will embed wallet-based rails directly into proven institutional workflows, making tokenized markets immediately usable for professional traders.”
The “immediately usable” point reflects a broader challenge in tokenized markets: liquidity and participation remain limited because the operational interface is unfamiliar and fragmented. If institutions can access tokenized assets using the identical controls, performance expectations and compliance guardrails as equities trading, participation can scale quicker.
That is also where LeveL Markets’ positioning becomes central. With “deep roots in institutional equity trading,” the firm can act as the connective tissue between traditional market participants and tokenized infrastructure—especially for purchase-side clients who demand robust execution quality and predictable workflow performance.
Takeaway
Atomic Settlement and Lower Intermediary Costs Positioned as Key Benefits
The partnership is also being framed around post-trade efficiency. 21X and LeveL Markets said digital wallets will allow institutional customers to access the efficiencies of blockchain-based infrastructure, including “atomic settlement,” “the elimination of settlement failures,” and “reduced intermediary costs.”
These are core tokenization promises. In traditional capital markets, settlement cycles introduce counterparty exposure, collateral costs and operational complexity. Failed settlement can create real risk, particularly in volatile markets. Atomic settlement—where delivery and payment occur simultaneously—has long been cited as a way to reduce those risks while .
However, institutions have historically been cautious about these benefits because of the operational trade-offs: new custody models, wallet security, regulatory uncertainties and fragmented liquidity. The partnership argues that by keeping the institutional trading experience intact—“without compromising the standards of today’s trading environment”—firms can capture tokenization efficiencies while maintaining existing governance and controls.
LeveL Markets CEO Steve Miele emphasized continuity and execution quality, positioning tokenized access as an extension of LeveL’s core mission.
“LeveL Markets has always focused on improving execution quality and reducing friction for institutional participants,” Miele said. “This partnership with 21X extends that mission into the next generation of market infrastructure, giving our clients seamless access to tokenized instruments while preserving the experience, controls and performance they expect.”
The companies said they are “delivering institutional-grade trading,” suggesting that the integration is designed for professional market standards rather than retail-facing tokenization models.
