The London Stock Exchange and Payward, the parent company of crypto exchange Kraken, announced a partnership to bring tokenized versions of the 100 largest companies listed on the exchange onto the blockchain. The initiative uses Payward’s xStocks framework and aims to expand access to UK equities through digital rails.

Under the agreement, the top 100 London-listed stocks will become available as xStocks in the coming weeks. Each token is backed one-to-one by the underlying shares. Holders can trade them around the clock on supported centralized exchanges, transfer them to self-custody wallets, and use them in compatible onchain applications.

Global Reach with Domestic Limits

The tokenized products will be accessible to eligible investors across more than 110 countries. However, xStocks remain unavailable to investors based in the United Kingdom at this stage. The rollout extends an existing framework that Payward has already applied to other markets.

xStocks have generated more than $40 billion in total trading volume to date. Nearly $20 billion of that activity has settled onchain, and the products have attracted more than 200,000 holders.

Plans for LSE 24 Venue

Subject to regulatory approval, the London Stock Exchange intends to list the xStocks and support their trading on LSE 24, its planned 24-hour trading venue. The platform is targeted for launch in the first half of 2027 and is expected to cover tokenized equities from the United States, European Union, United Kingdom and Hong Kong, with potential expansion to other asset classes.

The exchange has been preparing overnight trading capacity to meet demand for continuous access to both UK and international assets.

Exploration of Native Onchain Shares

Beyond the initial tokenized wrappers, Payward and the London Stock Exchange said they will explore natively issued equity tokens. These would allow exchange members to issue and service shares directly on the blockchain. The tokens would be fully fungible with traditional shares and carry the same rights.

This approach differs from current xStocks, which provide price exposure through tokens backed by shares held in custody rather than direct ownership of the underlying equity.

London Stock Exchange Group shares declined 2 percent in early trading following the announcement.