Partnership Announced
The London Stock Exchange Group (LSEG) has announced a partnership with Payward, the parent company of crypto exchange Kraken, to tokenize UK stocks. Under the agreement, the 100 largest listed equities will be issued as "xStocks" through Payward's tokenization framework, launching in 2027 on LSEG's proposed 24-hour trading venue, LSE 24, subject to regulatory approval. The announcement was made on September 1, following earlier plans for a blockchain-based settlement service.
The companies said they will explore wallet-based access, blockchain infrastructure, and connectivity with LSEG's regulated market ecosystem. The initiative follows Kraken's earlier launch of US stock trading in the European Economic Area.
Statements from Leadership
Julia Hoggett, CEO of the London Stock Exchange, said tokenization "must develop in a way that preserves the trust, rights and role of regulated markets." Payward co-CEO Arjun Sethi characterized the partnership as evidence that crypto and traditional finance can complement each other rather than compete, according to CoinGape.
Payward's chief commercial officer, Mark Greenberg, told the Financial Times that the collaboration would provide access to tokenized stocks tracking leading UK equity products starting in 2027, as reported by Crypto Breaking News, which cited the Financial Times.
LSE 24 and Extended Trading Hours
The plan revolves around LSE 24, the exchange operator's proposed round-the-clock trading facility. LSE has said it would operate Monday through Friday, with trading expected to run from the evening through the night, offering 24/5 market access once launched. The venue was first announced on July 21, according to Crypto Breaking News.
CoinGape reported that LSE plans to launch extended trading hours in early 2027, aiming to attract retail investors who have gravitated toward crypto firms offering around-the-clock and tokenized trading. The exchange faces competition from platforms like Coinbase, which launched 24/5 US stock trading for UK users, and Robinhood, which has begun offering crypto, stocks, ISAs, and derivatives to eligible UK customers via Bitstamp.
Broader Industry Context
The move places London among several global exchanges exploring tokenized equities. Crypto Breaking News reported that Nasdaq agreed in August to acquire LeveL Markets, described as the third-largest alternative trading system in the US by trading volume, as part of a push toward tokenized markets. In March, Nasdaq was reported to be working with Payward and its subsidiary Backed—the issuer behind xStocks—to build an "equities transformation gateway."
Intercontinental Exchange (ICE), parent of the New York Stock Exchange, has received investment from crypto exchange OKX to bring NYSE-listed tokenized stocks to the exchange starting in the second quarter of 2026. Deutsche Börse has invested $200 million in Payward, tied to plans for broader access to blockchain-based securities and tokenized products. CME Group, meanwhile, has proposed futures contracts tied to Cardano, Chainlink, and Stellar, with plans to add Avalanche and Sui futures, subject to regulatory approval.
According to data from xyz, cited by Crypto Breaking News, the total value of tokenized stocks rose by 15% over the previous 30 days to $2.53 billion, while the number of tokenized equity holders increased by 153% to 2.45 million during the same period.