The London Stock Exchange and Payward, Kraken’s parent company, are partnering to bring tokenized representations of major UK-listed equities into regulated market infrastructure. Under the plan, Payward will tokenize the 100 largest London-listed companies as xStocks, while the LSE intends to list xStocks on its forthcoming LSE 24 venue in 2027, subject to regulatory approval. The partnership connects blockchain-based equity exposure with one of the world’s most established securities markets.
The rollout has two distinct stages. Payward says the 100 UK equities will become available as xStocks in the coming weeks to eligible investors across more than 110 countries, although UK-based investors are currently excluded. Separately, LSE plans to support the products through LSE 24 next year. That means the tokens can begin circulating before they are admitted to the planned London Stock Exchange venue.
LSE 24 Extends Trading Beyond Market Hours
LSE 24 is designed as a 24/5 venue rather than a seven-day market. In its official LSE 24 launch plan, LSEG said the platform will provide near-continuous Monday-to-Friday trading and begin client testing before the end of 2026, with initial products expected in the first half of 2027. Tokenized equities would extend that model by combining longer trading hours with blockchain-based transfer and settlement infrastructure.
xStocks are backed 1:1 by underlying shares and can move through blockchain wallets and compatible onchain applications. However, current xStocks are not equivalent to direct stock ownership. Kraken’s disclosures state that holders receive economic exposure but no voting rights or legal claim to the underlying company shares, while dividend economics are handled through the token structure. The distinction between tokenized exposure and actual shareholder ownership remains central to the product’s risk profile. Kraken’s xStocks disclosure
LSEG Also Explores Full-Rights Equity Tokens
Importantly, LSEG is separately assessing an issuer-sponsored tokenized equity structure designed to preserve conventional shareholder rights, governance standards and market protections. Its Digital Securities Depository could eventually support issuance, settlement and asset servicing for those securities. That rights-preserving model is distinct from the existing xStocks framework and could move tokenization closer to digitally native ownership of actual public equity.
The regulatory environment is already being built around that transition. The UK Financial Conduct Authority’s Digital Securities Sandbox allows real tokenized equities, bonds and fund units to be issued, traded and settled within a supervised environment operated with the Bank of England. The sandbox gives UK market infrastructure providers a regulated route to test blockchain settlement before moving toward a permanent framework.
The partnership therefore goes beyond simply putting British stock prices onchain. LSEG is combining LSE 24, its Digital Securities Depository and digital settlement infrastructure with Payward’s established token distribution framework. The decisive question will be whether regulators approve a model that extends trading hours and blockchain mobility while maintaining clear ownership rights, market integrity and reliable settlement.
