The London Stock Exchange is preparing to bring tokenized stocks to its markets as part of a broader push into digital assets, partnering with Payward, the parent company of cryptocurrency exchange Kraken, to connect traditional equities with blockchain infrastructure.
Under the initiative, shares in UK-listed companies would be represented digitally on blockchain networks while remaining connected to the underlying securities. The LSE said the project is designed to broaden investor access without sacrificing the shareholder rights, protections and governance standards associated with regulated public markets.
The partnership represents one of the clearest signs yet that tokenization is moving from the cryptocurrency industry toward mainstream financial infrastructure.
LSE Partners With Kraken Owner
LSE and Payward will explore how tokenized equities can connect regulated capital markets with blockchain-based platforms, including digital wallets and on-chain applications.
Payward operates the xStocks framework, which creates tokenized representations of publicly traded shares. These products are backed 1:1 by underlying equities and are designed to make traditional securities easier to transfer and trade through digital infrastructure.
As part of the partnership, the London Stock Exchange intends to list xStocks on its upcoming LSE 24 venue in 2027, subject to regulatory approval. LSE 24 is being developed to extend trading beyond conventional London market hours.
Payward is expected to tokenize major London-listed companies, creating blockchain-based representations that could make UK equities more accessible to investors accustomed to always-on cryptocurrency markets.
Traditional Stocks Move On-Chain
Tokenization converts the economic exposure of conventional assets such as stocks into digital tokens that can interact with blockchain infrastructure.
Supporters argue that the technology can expand market access, improve settlement efficiency and make assets easier to move between trading venues and digital wallets.
For the LSE, the initiative goes beyond simply listing tokenized products.
LSEG is also developing its Digital Securities Depository, designed to support the issuance, recording, transfer and settlement of digital securities, alongside its Digital Settlement House for instant settlement across on-chain and traditional payment networks.
Global Exchanges Embrace Tokenization
The London initiative comes as some of the world’s largest financial institutions explore similar technology.
Tokenized equities have increasingly attracted attention from traditional exchanges, cryptocurrency platforms and regulators as investors seek markets capable of operating beyond conventional trading hours.
The trend is also developing in the United States, where regulators have been working on frameworks that could allow broader trading of blockchain-based stocks.
For London, the initiative also supports the UK’s ambition to strengthen its position as a global center for digital finance.
If regulators approve the project, the arrival of tokenized stocks on LSE infrastructure could mark a significant step toward integrating blockchain technology directly into one of the world’s oldest and most established capital markets.
