TLDR
- The London Stock Exchange (LSE) has partnered with Payward, parent company of crypto exchange Kraken, to tokenize shares of the 100 largest LSE-listed companies.
- The tokenized shares, called xStocks, will be available to investors in over 110 countries but not to UK-based investors.
- xStocks have already generated more than $40 billion in trading volume, with nearly $20 billion settled onchain.
- LSE plans to list xStocks on its new 24-hour trading venue, LSE 24, subject to regulatory approval.
- The two companies will also explore issuing shares directly on blockchain, which would carry the same rights as traditional shares.
The London Stock Exchange has announced a partnership with Payward, the parent company of crypto exchange Kraken, to bring tokenized versions of UK-listed stocks to global investors.
LSE Partners With Kraken Parent Payward, Plans to List xStocks in 2027
The London Stock Exchange (LSE) announced a partnership with Kraken parent company Payward to explore connecting regulated capital markets infrastructure with on-chain ecosystems and developing a UK tokenized… pic.twitter.com/MuZZIAFUe4
— Wu Blockchain (@WuBlockchain) September 1, 2026
The deal will see shares of the 100 largest companies listed on the LSE made available through Payward’s xStocks platform. Each xStock is backed one-to-one by the underlying security, meaning one token equals one real share.
The tokenized shares will be accessible to eligible investors in more than 110 countries. UK-based investors are currently excluded from xStocks due to regulatory reasons.
xStocks are not a new product. The platform has already processed more than $40 billion in total trading volume, with nearly $20 billion of that settled directly on blockchain. The platform has more than 200,000 holders.
LSE 24 Could Become a Home for Tokenized Stocks
The partnership goes beyond simply listing UK stocks on the xStocks platform. Subject to regulatory approval, the LSE plans to list xStocks on LSE 24, its planned 24-hour trading venue set to launch in the first half of 2027.
LSE CEO Julia Hoggett said tokenization must develop in a way that preserves the trust and rights of regulated markets. Payward co-CEO Arjun Sethi framed the deal as bringing regulated finance and blockchain infrastructure together.
The LSE has been working to attract new types of investors, including retail traders used to round-the-clock trading. The exchange has also been under pressure from activist investor Elliott Management, which disclosed a stake in February 2026.
Exploring Native Blockchain-Issued Shares
Beyond xStocks, Payward and the LSE said they will explore issuing shares natively on blockchain. Under this model, securities would be issued directly onchain and would be fully fungible with traditional shares, carrying the same rights.
This differs from the current xStocks setup, where tokens are backed by shares held in a traditional custody system.
Payward has been expanding xStocks use cases. In July 2026, Kraken began letting eligible customers outside the US use selected xStocks as collateral for futures and margin trading. Assets accepted include tokenized versions of Apple, Nvidia, and Tesla.
The LSE is not alone in moving toward tokenized equities. Deutsche Boerse took a $200 million stake in Kraken in April. Robinhood has launched tokenized stocks in the EU, and Coinbase is also expanding in the sector.
London Stock Exchange Group shares fell roughly 2% in early London trading on Tuesday.
No specific launch date has been given for the first UK-listed xStocks beyond the coming weeks.
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