London Stock Exchange partners with Payward to tokenize 100 largest UK stocks

Sep 1, 2026

The London Stock Exchange has partnered with Kraken parent Payward to tokenize the UK's 100 largest listed companies. Operating under the xStocks framework, these 1:1-backed tokens will launch within weeks to eligible investors in over 110 countries, though UK domestic investors are excluded. Subject to regulatory approval, the LSE plans to list these assets on LSE 24, its upcoming 24-hour trading venue scheduled for 2027, while also exploring fully fungible, native onchain equity tokens.

LSE-Payward tokenization partnership

▪London Stock Exchange Group shares fell 2% in early trading in London following the announcement of the partnership with Payward on September 1, 2026
▪The Financial Times first reported the partnership between the London Stock Exchange and Payward to tokenize the 100 largest publicly listed UK companies
▪The London Stock Exchange and Kraken parent company Payward announced a partnership on September 1, 2026, to tokenize the 100 largest UK-listed companies

xStocks framework mechanics

▪Since its launch in June 2025, the xStocks framework has accumulated over $40 billion in total volume, including nearly $20 billion in onchain settlement volume, across more than 200,000 holders
▪The tokenized UK equities will be issued under Payward's xStocks framework and backed 1:1 by the underlying shares
▪The global tokenized equities market is valued at approximately $2.5 billion, with Ondo leading at $840 million and Payward's xStocks holding around $606 million as the second-largest issuer

Geographic availability restrictions

▪The tokenized UK equities will not be available to UK-based domestic investors when the initial rollout begins
▪The tokenized UK equities will be available to eligible investors in more than 110 countries within weeks of the September 1, 2026 announcement
▪Payward partnered with financial technology firm GTN in July 2026 to expand the xStocks framework into Hong Kong, the UK, Europe, and South Korea

LSE 24 regulatory approval

▪Subject to regulatory approval, the London Stock Exchange plans to list and support trading of xStocks on its planned LSE 24 venue starting in 2027
▪The LSE 24 venue is scheduled to operate Monday through Friday from 5 p.m. to 7:50 a.m., with a 30-minute pause for end-of-day processing
▪The London Stock Exchange plans to conduct client testing for its extended-hours trading venue before the end of 2026

Native equity token exploration

▪Native equity tokens would allow London Stock Exchange members to issue and service corporate shares directly onchain, bypassing traditional custodial wrappers
▪Payward and the London Stock Exchange plan to explore native, issuer-sponsored equity tokens that carry the same rights and fungibility as traditional ordinary shares

24/7 trading capabilities

▪The tokenized UK equities will allow eligible international investors to trade the assets 24/7 on centralized exchanges, self-custody wallets, and onchain applications
▪The London Stock Exchange plans to integrate agentic artificial intelligence capabilities into its overnight venue to support portfolio evaluation, market research, and trade execution