Payward and London Stock Exchange Collaborate to Tokenize UK Stocks

The London Stock Exchange (LSE) has announced a collaboration with Payward, the parent company of crypto exchange Kraken, to tokenize the largest listed companies in the UK. This initiative aims to create xStocks, which will represent the top 100 London-listed stocks on the blockchain.

According to the announcement, the LSE plans to support trading of these tokenized assets on its upcoming 24-hour trading venue, LSE 24, pending regulatory approval. This move signifies the expansion of xStocks into a major equity market, having already achieved over $40 billion in total volume since its launch.

The xStocks framework has attracted more than 200,000 holders and demonstrates the potential for tokenized assets to provide investors with access to global markets. The rollout will allow investors from over 110 countries to trade these tokens, although they will not be available to UK investors at this stage.

In addition to tokenizing existing equities, Payward and the LSE are considering the development of native, issuer-sponsored equity tokens. This could enable LSE members to issue shares directly on the blockchain while retaining the rights associated with traditional securities.

The LSE is also planning to introduce an overnight trading venue in 2027 to attract international retail investors, competing with the continuous trading offered by crypto markets. This platform will initially focus on exchange-traded products, enhancing accessibility for investors across various global markets.