The London Stock Exchange (LSE) has partnered with Payward, the parent company of crypto exchange Kraken, to tokenize shares of the 100 largest companies listed on the exchange.

The tokenized shares, known as xStocks, will be available to eligible investors in more than 110 countries, but not to UK-based investors, for regulatory reasons. Each xStock is backed one-to-one by the underlying security, meaning one token represents one real share.

Wu Blockchain posted on X that the LSE had partnered with Kraken parent Payward to explore connecting regulated capital markets infrastructure with on-chain ecosystems and developing a UK tokenized market:

https://x.com/WuBlockchain/status/2094713870439039186?ref_src=twsrc%5Etfw

xStocks are already an established product. According to the report, the platform has processed more than $40 billion in total trading volume, with nearly $20 billion settled directly onchain. It also has more than 200,000 holders, giving the partnership an existing product base rather than a fresh concept.

LSE 24 Could Host Tokenized Stocks

The partnership extends beyond making UK-listed stocks available through Payward’s xStocks platform. Subject to regulatory approval, the LSE plans to list xStocks on LSE 24, its planned 24-hour trading venue, which is expected to launch in the first half of 2027.

LSE CEO Julia Hoggett said tokenization must develop in a way that preserves the trust and rights of regulated markets. Payward co-CEO Arjun Sethi said the agreement brings regulated finance and blockchain infrastructure together.

The LSE has been seeking to attract new types of investors, including retail traders accustomed to round-the-clock trading. The exchange has also faced pressure from activist investor Elliott Management, which disclosed a stake in February 2026.

Exploring Shares Issued Directly on Blockchain

In addition to xStocks, Payward and the LSE said they will explore issuing shares natively on blockchain. Under that model, securities would be issued directly onchain and would be fully fungible with traditional shares, carrying the same rights.

That differs from the current xStocks structure, in which tokens are backed by shares held in a traditional custody system.

Payward has been expanding the use cases for xStocks. In July 2026, Kraken began allowing eligible customers outside the US to use selected xStocks as collateral for futures and margin trading. The accepted assets include tokenized versions of Apple, Nvidia, and Tesla.

The LSE is not alone in moving toward tokenized equities. Deutsche Boerse took a $200 million stake in Kraken in April. Robinhood has launched tokenized stocks in the EU, and Coinbase is also expanding in the sector, underscoring how major market venues and trading platforms are testing where tokenization fits within existing market structure.

London Stock Exchange Group shares fell roughly 2% in early London trading on Tuesday.

No specific launch date has been announced for the first UK-listed xStocks beyond the coming weeks.