London Stock Exchange and Payward partner to tokenize top 100 UK stocks

The London Stock Exchange (LSE) and Payward, the parent company of the Kraken cryptocurrency exchange, have announced a partnership to tokenize the 100 largest companies listed in London. These digital assets, known as xStocks, will be backed 1:1 by the underlying shares and are expected to be available within weeks.

The initiative aims to provide 24/7 trading access to investors in more than 110 countries through Kraken and other supporting platforms. However, the xStocks are currently unavailable to residents of the United Kingdom. While the tokens provide economic exposure and track the performance of the real shares, they do not grant traditional shareholder rights such as voting.

LSE is also exploring how its Digital Securities Depository (DSD) infrastructure can support the settlement of tokenized equities, subject to regulatory approval. The exchange plans to potentially list these assets on its LSE 24 venue, a 24-hour trading system, starting in 2027.

Separately, reports indicate that Payward has delayed its planned initial public offering (IPO) until at least the second quarter of 2027. The delay follows a pause in March 2026 due to challenging market conditions and fluctuating trading volumes.