The London Stock Exchange Group (LSEG) has partnered with Payward, the parent company of crypto exchange Kraken, to tokenise the 100 largest companies listed on the London Stock Exchange (LSE). Through Payward’s xStocks tokenisation framework, the initiative aims to issue digital assets backed on a strict 1:1 basis with underlying UK equities held within regulated custody structures.
The initial rollout of these tokenised shares is expected in the coming weeks for eligible international investors across more than 110 countries, though current regulations restrict UK-based retail access. By integrating blockchain-based infrastructure directly with established capital market protections, LSEG seeks to broaden global investor access to UK public equities without sacrificing existing compliance and settlement standards.
Subject to regulatory approval, LSEG plans to integrate these xStocks into LSE 24, its proposed extended-hours trading venue targeted for 2027. This connection could eventually allow tokenised shares from the UK, US, European Union, and Hong Kong to trade around the clock. Unlike traditional equities bound by defined exchange operating hours, tokenised assets enable continuous onchain transferability and interaction with digital wallet ecosystems.
However, while xStocks mirror the economic performance of underlying shares, current iterations provide synthetic economic exposure rather than direct voting rights or cash dividend distributions. LSEG is simultaneously evaluating native UK tokenised equity structures that would allow issuers to launch digitally native shares directly through its regulated Digital Securities Depository.
Institutional Convergence and the Onchain Expansion
The partnership marks a significant milestone in the convergence of mainstream capital markets and digital asset rails, demonstrating how traditional stock exchanges can leverage public and private blockchains alongside anti-money-laundering (AML) controls. Payward’s xStocks framework has already processed over $40 billion in lifetime trading volume and $20 billion in onchain settlement across hundreds of tokenised stocks and exchange-traded funds. By utilizing xStocks, LSEG aims to reduce post-trade settlement friction, enhance cross-border liquidity, and test how digital securities can operate within a fully compliant market architecture.
For traditional exchanges, tokenisation offers a modernized path to asset issuance, clearing, and continuous trading. Payward views the joint effort as proof that traditional finance and cryptocurrency ecosystems can operate on unified infrastructure rather than competing directly. The immediate roadmap centers on bringing the top 100 UK-listed corporate entities onchain before advancing infrastructure testing ahead of LSE 24’s prospective 2027 launch. If approved by regulators, the model could establish London as a primary global hub for regulated, 24/7 tokenised security trading.
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