London Stock Exchange to launch tokenized stocks in partnership with Kraken owner Payward

The London Stock Exchange Group (LSEG) is partnering with Payward, the parent company of cryptocurrency exchange Kraken, to launch tokenized U.K. shares. Known as xStocks, these digital representations of London-listed equities are planned to launch in 2027 on LSE 24, LSEG's upcoming 24-hour trading venue, subject to regulatory approval. The initiative represents LSEG's latest push into digital assets to attract retail investors, amid broader industry trends toward tokenization and round-the-clock trading.

LSEG tokenized stock launch

• ▪London Stock Exchange Group plans to launch tokenized stocks, known as xStocks, in 2027, subject to receiving regulatory approval.
• ▪London Stock Exchange Group plans to launch tokenized U.K. shares, which are digital representations of publicly traded shares backed by London-listed companies.

Payward partnership with Kraken

• ▪London Stock Exchange Group is partnering with financial infrastructure platform Payward, the parent company of cryptocurrency exchange Kraken, to explore new ways of trading equities.
• ▪Germany's Deutsche Boerse purchased a $200 million stake in Kraken, representing a 1.5% fully diluted holding, in April 2026 to partner on crypto assets and tokenized markets.

LSEG crypto expansion strategy

• ▪The tokenized stock initiative represents London Stock Exchange Group's latest push into digital assets, following its February 2026 announcement to build a blockchain-based settlement service.
• ▪London Stock Exchange Group has faced pressure to improve performance from activist investor Elliott Management, which disclosed a stake in the exchange operator in February 2026.

LSE 24 overnight trading

• ▪London Stock Exchange Group intends to list its tokenized stocks, known as xStocks, on the LSE 24 trading venue.
• ▪London Stock Exchange Group plans to launch LSE 24, a 24-hour overnight trading venue, in the first half of 2027.

Retail investor access expansion

• ▪Traditional stock exchanges are launching round-the-clock trading and tokenized products to attract retail investors who are accustomed to continuous cryptocurrency trading.
• ▪London Stock Exchange Group's tokenization initiative aims to expand global access to London-listed companies by representing shares as blockchain-based tokens that can be sold to cryptocurrency traders.

Tokenization market trend

• ▪The World Federation of Exchanges urged regulators in August 2025 to crack down on tokenized stocks, warning they could create new investor risks and undermine market integrity.
• ▪Financial firms Robinhood and Coinbase are expanding into the tokenized stock sector, with Robinhood having already launched tokenized stocks in the European Union.
• ▪Supporters of tokenization state it can transform stock markets by enabling 24/7 trading and near-instant settlement, which could boost liquidity and lower transaction costs.