BREAKING: London Stock Exchange Partners with Kraken’s Parent to Tokenize UK Stocks
Highlights
- London Stock Exchange Group (LSEG) has partnered with Payward to launch tokenized UK stocks.
- The UK 100 largest listed equities will launch as xStocks in 2027.
- It follows as LSE plans to launch extended trading hours and blockchain-based settlement.
London Stock Exchange Group (LSEG) has partnered with Payward, the parent company of crypto exchange Kraken, to tokenize stocks in the UK. The 100 largest listed equities will launch as xStocks in 2027.
London Stock Exchange and Kraken’s Parent Payward to Launch Tokenized xStocks
In an official announcement on September 1, LSEG revealed plans to launch UK tokenized equity structures as part of a deeper push into the crypto industry. This comes after earlier plans for a blockchain-based settlement service.
Under the agreement, stocks of the 100 largest companies listed on the London Stock Exchange will be issued as xStocks through Payward’s tokenization framework. It will launch on its 24-hour trading venue LSE 24 in 2027, subject to regulatory approval.
The two companies will explore wallet-based access, blockchain infrastructure, and connectivity with LSEG’s regulated market ecosystem. The xStocks launch plans follow Kraken’s launch of US stock trading in the European Economic Area (EEA).
Julia Hoggett, CEO of 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 framed the partnership as proof that crypto and traditional finance can work together rather than compete.
As CoinGape reported earlier, LSE plans to launch extended trading hours in early 2027. The exchange aims to win back retail investors drawn to 24/7 stock and tokenized offerings by crypto firms.
Expanding Demand from UK Investors
Many British retail investors have already transitioned their capital to a top UK crypto trading platform to bypass the restricted hours of traditional domestic stock brokers.
Stock exchanges are now facing competition from crypto firms that offer benefits such as flexible access, real-time settlement, and 24/7 trading. Notably, crypto exchange Coinbase launched 24/5 US stock trading to all users in the UK.
In addition, Robinhood began rolling out crypto, stocks, ISAs, and derivatives trading to eligible UK customers via Bitstamp. This comes as the platform continues to expand its broader crypto ecosystem.
For investors seeking on-chain exposure to traditional equities, check the best exchanges for tokenized stocks that provide a secure bridge to hybrid digital assets.
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