London Stock Exchange to Launch Tokenized UK Stocks with Kraken Parent Company

LSE and Payward partner for new trading venue

The London Stock Exchange (LSE) is collaborating with Payward, the parent company of the Kraken cryptocurrency exchange. Together, they plan to offer tokenized versions of major UK stocks. A cryptocurrency exchange is a platform where people can buy and sell digital assets.

These digital assets will be available on LSE 24, a new platform designed for night-time trading. Tokenization uses blockchain technology—a secure digital ledger—to create digital certificates of ownership for traditional assets like company shares. This allows for features like fractional ownership, where investors can buy a small piece of a single share.

Key details of the partnership

• Trading is scheduled to begin in 2027.
• The platform will operate 24 hours a day, five days a week, from Monday to Friday.
• Tokenized stocks will track the value of leading UK equity products.
• Payward's chief commercial officer, Mark Greenberg, confirmed the plans in a report by the Financial Times.

Traditional finance institutions move toward digital assets

The LSE is joining several other major financial institutions exploring digital markets. Nasdaq recently agreed to acquire LeveL Markets to expand its tokenized offerings. Additionally, the Intercontinental Exchange (ICE), which owns the New York Stock Exchange, has invested in the OKX crypto exchange to bring tokenized stocks to its platform by 2026.

Other major players like Deutsche Börse and CME Group have also announced digital asset initiatives. CME Group, a large derivatives exchange, plans to launch futures contracts for various cryptocurrencies including Cardano and Avalanche, pending regulatory approval.

Growth in tokenized markets

Interest in these digital products is growing among investors. Recent data from RWA.xyz shows that the total value of tokenized stocks on blockchain networks rose by 15% in a single month, reaching approximately $2.53 billion. The number of individuals holding these digital shares has also increased to roughly 2.45 million holders.

Timeline for the new trading platform

The LSE 24 venue is expected to launch in 2027. This platform aims to provide investors with more flexible trading hours beyond the standard business day, allowing for round-the-clock exposure to UK markets during the work week.

Sources

• Cointelegraph