London Stock Exchange and Kraken owner Payward to tokenize top UK stocks

LSE and Payward partner to bring UK stocks onchain

The London Stock Exchange (LSE) and Payward, the owner of crypto exchange Kraken, will work together to offer blockchain-based versions of the 100 largest UK-listed stocks. These tokenized stocks, called xStocks, will allow trading 24 hours a day across exchanges, self-custody wallets, and blockchain applications.

Tokenized stocks are digital tokens backed one-to-one by traditional shares. Unlike regular stocks, which trade only during exchange hours, xStocks can be traded at any time and settle instantly on a blockchain, which is a digital ledger that records transactions.

Key details of the partnership

• xStocks will represent the 100 largest companies listed on the LSE.
• Trading will be available 24/7, unlike traditional stock markets with limited hours.
• Investors in over 110 countries may access these tokenized stocks, though they are not currently available to UK-based investors.
• The LSE plans to list xStocks on its new 24-hour trading venue, LSE 24, pending regulatory approval.
• The two companies will also explore issuing native equity tokens on the LSE, which would have the same rights as traditional shares.

What Payward says about xStocks

Payward reports that its xStocks framework has already generated over $40 billion in total trading volume, with nearly $20 billion settled onchain. The tokens have more than 200,000 holders.

Arjun Sethi, Payward’s co-CEO, said in a statement that the partnership shows traditional finance and crypto can work together rather than compete.

Regulatory and market considerations

LSE CEO Julia Hoggett noted that tokenization must develop in a way that maintains trust and the role of regulated markets. The LSE and Payward’s plans are subject to regulatory approval.

Shares of London Stock Exchange Group fell 2% in early trading following the announcement.

Sources

• CoinDesk