Payward, London Stock Exchange join forces to tokenize top UK stocks

The London Stock Exchange (LSE) and Payward are teaming up to bring tokenized versions of the UK’s largest listed companies onto the blockchain rails, the companies announced Tuesday.

The parent company of crypto exchange Kraken plans to tokenize the top 100 London-listed stocks as xStocks, while the LSE will explore supporting their trading on LSE 24, its planned 24-hour trading venue, subject to regulatory approval.

The effort marks the expansion of xStocks into one of the world’s major equity markets. Since launching just over a year ago, xStocks have accumulated more than $40 billion in total volume, including more than $20 billion in onchain settlement volume.

The framework now has more than 200,000 holders and has already demonstrated how tokenized assets can provide investors with access to companies and markets beyond traditional geographic and market-access boundaries.

The planned UK rollout will make the top 100 London-listed companies available as xStocks to investors in more than 110 countries. The tokens will offer continuous, onchain exposure to the UK’s biggest listed names, although they are not currently available to UK investors, Payward stated.

If regulators approve the arrangement, the LSE will list the xStocks and support their trading through LSE 24. The initiative could allow LSE members to trade tokenized securities representing companies from the US, EU, UK and Hong Kong alongside other asset classes, combining continuous blockchain-based trading with established regulated infrastructure.

Beyond distributing existing equities as tokens, Payward and the LSE plan to investigate native, issuer-sponsored equity tokens. Such instruments could allow LSE members to issue and service shares directly onchain while maintaining the rights and fungibility associated with conventional securities.

London Stock Exchange targets retail investors with longer trading hours

The London Stock Exchange plans to introduce an overnight trading venue in the first half of 2027, extending its operating hours as it looks to attract international retail investors and compete with the always-on accessibility of crypto markets.

The LSE has already expanded its presence in crypto-linked products. In mid-2024, it began listing physically backed Bitcoin and Ethereum ETNs following the debut of US spot Bitcoin ETFs. Although those products initially targeted professional investors, changes by the Financial Conduct Authority have since enabled retail participation.

The overnight platform will initially target exchange-traded products, giving the LSE a focused entry point into extended-hours trading. The move would make London-listed investment products more accessible to investors across Asia, the Middle East, North America and other markets outside the LSE’s traditional trading window.

The exchange also intends to integrate agentic AI capabilities into the venue. These systems could support portfolio evaluation, market research and trade execution.

Source: cryptonews.net