The London Stock Exchange (LSE) is collaborating with Payward, the parent company of global cryptocurrency exchange Kraken, to bring tokenized equity for the 100 largest firms listed on its platform. The integration aims to bridge traditional capital markets with blockchain infrastructure, enabling these companies’ shares to become available as fully backed tokens on Payward’s xStocks platform.
Tokenized stocks for the UK’s largest listed firms
The upcoming launch will see the shares of the UK’s leading public companies available as digital tokens backed one-to-one by the underlying equities. According to Payward, xStocks plans to list these assets within the next few weeks, supporting 24/7 trading on participating cryptocurrency exchanges.
Unlike traditional trading, which often involves brokers and restricted trading hours, tokenized shares on the blockchain allow for transfers and trades at any time. Payward’s xStocks platform, which already serves over 200,000 token holders, has processed more than $40 billion in transaction volume in under a year, with $20 billion of that settled on-chain.
While these assets offer a new way to trade conventional stocks using blockchain, the xStocks platform is not yet available to UK investors. Presently, the product can be accessed by investors in over 110 countries, expanding the reach of UK-listed companies to a broad global audience.
ETH
SOL
BSC
ROBINHOOD
USDT
AAPL| Platform | Asset Type | Accessibility | Volume (last year) | Active Token Holders |
|---|---|---|---|---|
| Payward xStocks | Tokenized UK equities | 110+ countries (excluding UK) | $40 billion | 200,000+ |
| London Stock Exchange | Conventional equities | UK & global (via brokers) | Not specified | Not specified |
Mini dictionary: Payward is a financial technology company best known as the parent of Kraken, a leading global cryptocurrency exchange. xStocks is its tokenized equity solution that converts shares of traditional companies into blockchain-based tokens for round-the-clock trading.
Plans for regulatory approval and new trading opportunities
LSE is exploring regulatory pathways to allow the listing and trading of xStocks on its proposed 24-hour trading facility, LSE 24. If approved, LSE 24 would enable non-stop trading of tokenized stocks from markets including the UK, US, EU, and Hong Kong, significantly enlarging access to different asset classes on blockchain infrastructure.
There are also potential plans for member firms to issue equity tokens directly on-chain. These tokens would be structured to provide the same rights and fungibility as traditional shares, leveraging blockchain for enhanced efficiency and accessibility.
Payward stated that its current partnership with the LSE could lead to even wider connectivity between traditional and digital markets, provided that future regulatory clearance is secured.
Executives stress collaboration, transparency and trust
LSE Group (LSEG) Chief Executive Julia Hoggett noted that while tokenization is promising, it should develop in a way that maintains investor protection and trust in capital markets. She emphasized the importance of upholding regulatory standards throughout the transition.
Payward co-CEO Arjun Sethi argued that the partnership demonstrates a growing recognition that digital assets and conventional finance can complement, rather than compete with, one another.
Payward co-CEO Arjun Sethi pointed to the collaboration as an example of how digital assets are being integrated into conventional finance, moving past the idea that the two markets must be rivals.
The initiative could also enable new applications for tokenized equities, such as using them as collateral in digital lending and credit products. Companies are actively evaluating how best to utilize these blockchain assets in a variety of financial services.
As the partnership develops, both sides acknowledge that regulatory approval remains a key step before broader adoption can take place in the UK and other jurisdictions. LSE and Payward continue to work toward creating a standardized, trusted process for bringing tokenized stocks to a global investor base.
