The London Stock Exchange (LSE) and Payward, the parent company of crypto exchange Kraken, are partnering to bring tokenized versions of the UK’s largest listed companies to blockchain-based markets.
Under the planned initiative, Payward will tokenize the top 100 London-listed stocks as xStocks. The LSE will explore supporting trading in those tokens through LSE 24, its proposed 24-hour trading venue, subject to regulatory approval.
Top 100 London-listed companies planned for xStocks
The partnership would expand xStocks into one of the world’s major equity markets. Since launching just over a year ago, the tokenized stock framework has recorded more than $40 billion in total volume, including over $20 billion in onchain settlement volume.
xStocks now have more than 200,000 holders. Payward said the framework has demonstrated how tokenized assets can give investors access to companies and markets beyond traditional geographic and market-access limitations.
The planned UK rollout would make the top 100 London-listed companies available as xStocks to investors in more than 110 countries. The tokens would provide continuous, onchain exposure to some of the UK’s largest listed companies, although they are not currently available to UK investors, Payward stated.
If regulators approve the arrangement, the LSE would list the xStocks and support their trading through LSE 24. The initiative could enable LSE members to trade tokenized securities representing companies from the US, EU, UK and Hong Kong alongside other asset classes, combining continuous blockchain-based trading with established regulated infrastructure.
Payward and the LSE also plan to examine native, issuer-sponsored equity tokens. These instruments could allow LSE members to issue and service shares directly onchain while preserving the rights and fungibility associated with conventional securities.
London Stock Exchange plans longer trading hours
The London Stock Exchange plans to launch an overnight trading venue in the first half of 2027. The move would extend the exchange’s operating hours as it seeks to attract international retail investors and compete with the continuous accessibility of crypto markets.
The LSE has already expanded its presence in crypto-linked products. In mid-2024, it began listing physically backed Bitcoin and Ethereum ETNs after the debut of US spot Bitcoin ETFs. Although those products initially targeted professional investors, changes by the Financial Conduct Authority have since enabled retail participation.
The overnight venue will initially focus on exchange-traded products, giving the LSE a targeted entry point into extended-hours trading. Longer trading hours could make London-listed investment products more accessible to investors in Asia, the Middle East, North America and other markets outside the exchange’s traditional trading window.
The exchange also intends to integrate agentic AI capabilities into the venue. The systems could support portfolio evaluation, market research and trade execution.
