London Stock Exchange Group (LSEG) is partnering with Payward, the parent company of crypto exchange Kraken, to bring the 100 largest London-listed stocks on-chain. The deal would convert these UK equities into blockchain tokens and marks one of LSEG’s biggest steps yet into digital-asset markets.
Key Facts
- LSEG and Payward will tokenise the 100 largest LSE-listed stocks using Payward’s xStocks framework
- LSEG plans to trade the tokenised shares on a new venue, LSE 24, pending regulatory approval
- LSE 24 is being built to support longer, potentially round-the-clock trading hours
- A launch is targeted for 2027
- Payward is separately expanding xStocks into Hong Kong and South Korea
This partnership pushes one of the world’s oldest exchanges further into a tokenisation race that has already drawn in Robinhood and Coinbase.
How the Deal Would Work
Under the partnership, Payward would convert the 100 biggest UK-listed companies into xStocks, tokens designed to track the value of real public shares.
If UK regulators approve, LSEG plans to list these products on LSE 24, a venue built to extend beyond the exchange’s standard trading hours. LSEG is targeting a 2027 launch.
The appeal is straightforward. Traditional markets trade only during set hours, while blockchain-based markets can, in principle, run continuously. Tokenised shares may also settle faster and connect more easily with crypto wallets and blockchain platforms.
However, traders should know that owning an xStock is not the same as owning the underlying share. The tokens are usually backed by the actual shares, but holders do not get voting rights or the right to receive dividends as investors who buy through a traditional broker.
Part of a Broader Tokenisation Push
LSEG’s move follows a wider trend among exchanges and brokers exploring blockchain-based securities.
Robinhood rolled out tokenised stocks in the EU last year, and Coinbase began offering tokenised shares on its Base network in the past week. Payward itself was already expanding xStocks beyond the UK, with plans to cover markets including Hong Kong and South Korea.
Whether tokenised equities take hold may depend less on the underlying technology than on whether regulators and exchanges agree on custody, shareholder rights, and settlement rules.
Payward’s Regulatory Standing in Europe
The tokenisation deal covers UK-listed stocks traded through a UK venue, but it lands as Payward’s European business operates under a newly enforced regulatory regime.
Beginning with the 1st of July, the entering into force of EU’s Markets in Crypto-Assets Regulation (MiCA), Payward has run its EU crypto-asset business through Payward Europe Solutions Limited. The entity is authorised as a Crypto-Asset Service Provider by the Central Bank of Ireland.
In Cyprus, Payward’s derivatives arm, Payward Europe Digital Solutions (CY) Limited, holds a CySEC licence (No. 342/17) covering derivatives and other financial instruments. Thus, the group has a regulated presence in the local market alongside its wider EU authorisation.
What Happens Next
The tokenisation plan still needs regulatory clearance before LSE 24 can launch. So far, LSEG has not confirmed a firm start date beyond its 2027 target.
For now, the deal signals that one of the world’s oldest stock exchanges sees a future where equities trade on-chain. The details that will decide its success (custody, investor rights and cross-border access) are still being worked out.
