The London Stock Exchange and Payward have partnered to bring tokenized versions of major UK-listed shares onto blockchain infrastructure. The initiative aims to connect regulated market infrastructure with 24-hour trading and settlement capabilities.
Under the partnership, Payward will tokenize the 100 largest companies listed in London as xStocks. The tokenized shares are expected to become available in the coming weeks through Kraken and other platforms supporting the xStocks Alliance. Each xStock is backed 1:1 by a publicly traded share and tracks the performance of the underlying security.
Investors in more than 110 countries will be able to access the tokenized shares, though xStocks are not currently available to UK-based investors. The tokens can move between centralized exchanges, self-custody wallets and onchain applications while supporting round-the-clock trading.
Regulatory Path Forward
Subject to regulatory approval, the London Stock Exchange plans to list xStocks and support trading through LSE 24, its recently announced 24-hour venue. This move could give LSE member firms access to tokenized equities through regulated market infrastructure.
Payward Co-CEO Arjun Sethi characterized the partnership as reflecting a convergence between cryptocurrency and traditional finance. "The real opportunity is what happens when they run on the same rails," Sethi said. "Bringing London-listed companies onchain as xStocks is the start of that."
Julia Hoggett, CEO of LSE plc and LSEG's Head of Digital and Securities Markets, emphasized the regulatory dimensions of tokenization. "Tokenization has the potential to change how investors access, and how issuers use, financial markets," Hoggett said, noting that tokenization must develop in a way that preserves "the trust, rights and role of regulated markets."
Current xStocks Activity
Payward reports that xStocks have surpassed $40 billion in total volume, including more than $20 billion settled onchain, across more than 200,000 holders.
Future Developments
Payward and the LSE also plan to explore native equity tokens issued directly onchain with the same rights and fungibility as traditional shares. This approach could bring issuance, ownership and settlement onto blockchain infrastructure while retaining the protections associated with regulated markets.
