The London Stock Exchange (LSE) has formed a strategic alliance with Payward, the parent company behind cryptocurrency exchange Kraken, to digitize equity shares from the top 100 LSE-listed companies.

The digital share tokens, branded as xStocks, will be available to investors in more than 110 countries, although residents of the United Kingdom will not be able to access them. The xStocks platform has already generated more than $40 billion in cumulative trading activity, with about $20 billion of that volume settled on blockchain networks.

The LSE also plans to list xStocks on LSE 24, its upcoming around-the-clock trading platform, subject to regulatory approval. In addition, both companies are exploring the possibility of issuing native blockchain-based securities that would carry the same rights as conventional shares.

The London Stock Exchange said the partnership with Payward is intended to bring blockchain-based tokenized versions of British equities to international investors while connecting regulated capital markets infrastructure with on-chain ecosystems.

LSE Partners With Kraken Parent Payward, Plans to List xStocks in 2027 The London Stock Exchange (LSE) announced a partnership with Kraken parent company Payward to explore connecting regulated capital markets infrastructure with on-chain ecosystems and developing a UK tokenized… pic.twitter.com/MuZZIAFUe4 — Wu Blockchain (@WuBlockchain) September 1, 2026

LSE Partners With Kraken Parent Payward, Plans to List xStocks in 2027 The London Stock Exchange (LSE) announced a partnership with Kraken parent company Payward to explore connecting regulated capital markets infrastructure with on-chain ecosystems and developing a UK tokenized… pic.twitter.com/MuZZIAFUe4 — Wu Blockchain (@WuBlockchain) September 1, 2026

Under the agreement, shares in the 100 most capitalized companies traded on the LSE will be made available through Payward’s xStocks platform. Each xStock token is backed one-for-one by an underlying share, creating a direct link between the digital token and the traditional security.

These blockchain-based equity products will be open to qualified investors across more than 110 jurisdictions worldwide. However, investors in the United Kingdom cannot currently access xStocks because of existing regulatory restrictions.

xStocks is not a new product. The platform has already recorded more than $40 billion in cumulative trading volume, with nearly $20 billion of those transactions settled directly on blockchain networks. It currently has more than 200,000 token holders.

LSE 24 Trading Platform in Focus

The partnership goes beyond adding UK equities to the existing xStocks ecosystem. If the necessary regulatory approvals are obtained, the London Stock Exchange plans to include xStocks on LSE 24, its proposed continuous trading venue, which is scheduled to begin operating in the first half of 2027.

Julia Hoggett, chief executive of the LSE, said tokenization efforts must develop while preserving the trust and protections associated with regulated markets. Arjun Sethi, co-chief executive of Payward, described the agreement as a meeting point between traditional regulated finance and blockchain technology.

The London Stock Exchange has been seeking ways to attract new types of investors, especially retail traders who are accustomed to continuous market access. The exchange has also come under scrutiny from Elliott Management, the activist investor that disclosed a significant ownership stake in February 2026.

Exploring Native Blockchain Share Issuance

Alongside the xStocks rollout, Payward and the LSE said they will examine the direct issuance of securities on blockchain infrastructure. Under this model, securities would be created natively on distributed ledgers and would be fully interchangeable with traditional shares while carrying identical ownership rights.

That approach differs from the current xStocks structure, in which digital tokens are backed by conventional shares held within traditional custodial frameworks.

Payward has been expanding the use cases for xStocks. In July 2026, Kraken introduced a feature allowing eligible international customers to use certain xStocks as collateral for derivatives and leveraged trading. Eligible assets include tokenized versions of companies such as Apple, Nvidia, and Tesla.

The LSE is not the only major market participant moving into tokenized equities. Deutsche Boerse acquired a $200 million equity stake in Kraken in April. Robinhood has launched tokenized stock offerings in the European Union, while Coinbase continues to expand in the same sector.

Shares of London Stock Exchange Group fell by about 2% in early London trading on Tuesday.

No exact launch date has been announced for the first UK-listed xStocks, beyond an indication that availability could come in the coming weeks.