Nasdaq’s 24-hour trading plan draws inspiration from crypto market

Nasdaq plans to introduce 24-hour trading by the second half of 2026, a move that mirrors the crypto market’s nonstop activity.

Nasdaq President Tal Cohen confirmed the development on March 7, stating that discussions are underway with regulators, market participants, and infrastructure providers. The goal is to extend trading hours to five days a week without interruptions.

He emphasized that the transition requires regulatory alignment and collaboration with industry infrastructure providers before implementation.

Why Nasdaq is shifting to 24-hour trading

Cohen explained that the decision is driven by a surge in global retail investment.

According to him, more investors from international markets are entering the US stock market due to lower barriers and increased interest in assets like exchange-traded funds (ETFs).

He pointed out that foreign ownership of US equities has nearly doubled in recent years, reaching $17 trillion by mid-2024. This trend highlights the growing demand for greater market accessibility.

According to him:

“In the APAC region, investors are increasingly turning their attention to US markets, drawn by the depth of opportunities, strong regulatory framework and access to high-growth sectors such as technology and healthcare.”

He added that the extended trading hours would accommodate international investors and make the market more inclusive. However, he also acknowledged that after-hours trading still faces challenges like low liquidity and volatility.

Cohen noted:

“The US equities markets process millions of messages per second, and every incremental change – whether in trading rules or the guardrails that protect investors– requires seamless industry-wide coordination, thoughtful planning, testing, and coordinated implementation.”

Despite these concerns, Cohen believes Nasdaq has the technological capabilities to support 24-hour trading.

Crypto influence

Nasdaq’s move aligns with the crypto industry’s continuous trading model. Unlike traditional stock markets, the crypto market operates 24/7 without centralized restrictions.

Some experts suggest that blockchain technology has influenced Nasdaq’s decision. This shift could bring traditional finance closer to the DeFi model, where trading happens in real time without barriers.

Mike Cahill, CEO of Oracle Network Pyth, emphasized this shift, stating:

“Markets never sleep. Nasdaq’s move toward 24-hour trading mirrors what crypto & DeFi have proven for years—continuous markets drive efficiency, liquidity, and global access. The future isn’t just non-stop trading; it’s real-time, permissionless, and on-chain.”

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