Full Breakdown
London Stock Exchange and Payward to Tokenize 100 UK Blue-Chip Stocks
9/2/2026, 11:15:32 AM
Core Event
The London Stock Exchange Group (LSEG) has entered a partnership with Payward, the corporate parent of the Kraken cryptocurrency exchange, to issue tokenized versions of the United Kingdom’s 100 largest listed companies on Payward’s xStocks platform. The tokens will be backed one-to-one by the underlying shares and are slated for listing on LSE’s forthcoming near-continuous venue, LSE 24, in 2027, pending regulatory approval. Eligible investors in more than 110 countries will be able to trade the tokens, while investors domiciled in the United Kingdom will be excluded at launch.
Background & Context
Tokenized equities have become a focal point for traditional exchanges seeking to extend market hours and broaden investor reach. LSEG announced the creation of LSE 24—a “24/5” trading venue operating Monday-to-Friday—in a July 21 announcement. The venue is designed to support continuous trading of regulated assets, including digital securities. Payward’s xStocks framework, launched in 2025, already hosts tokenized representations of U.S., EU, Hong Kong and other assets. The new agreement expands the model to the UK’s blue-chip market, aligning with broader industry moves by Nasdaq, ICE and Deutsche Börse to explore blockchain-based equity products.
Data & Statistics
- Cumulative trading volume on the xStocks platform: over $40 billion.
- On-chain settlement volume: nearly $20 billion.
- Number of token holders: more than 200,000.
- Eligible investor reach: 110+ countries (excluding the United Kingdom).
Official Statements & Responses
- Mark Greenberg, Payward’s chief commercial officer, told the Financial Times that tokenized stock trading will launch on LSE 24 “starting in 2027.”
Conflicting Reports & Gaps
Sources differ on the precise rollout timeline. One outlet notes that the first batch of tokenized UK equities is expected to go live “within weeks” after the September 1 announcement, while another indicates that LSE 24’s client testing is slated to begin by the end of 2026, with the broader launch in the first half of 2027. Neither source provides a definitive regulatory decision date, leaving the exact commencement of trading on LSE 24 uncertain.
Verbatim Quotes
- “Tokenisation has the potential to change how investors access, and how issuers use, financial markets,” — LSE CEO Julia Hoggett, coingape LSE CEO
What’s Next
- Regulatory Review – Approval from the UK financial regulator is required before xStocks can be listed on LSE 24. No decision date has been disclosed.
- Technical Integration – LSEG will evaluate how its Digital Securities Depository and Digital Settlement House can support settlement and servicing of the tokenized equities.
- Exploration of Native Tokens – The partnership includes a plan to investigate “native LSE-issued equity tokens” that would carry the same shareholder rights as traditional shares while remaining fully fungible on-chain.
The collaboration positions the London Stock Exchange as a leading traditional market integrating blockchain technology, while Payward gains a foothold in regulated equity distribution. The ultimate impact will depend on regulatory outcomes and the ability of the tokenized products to attract international investors beyond the United Kingdom.
