London Stock Exchange Taps Kraken Parent Payward to Tokenize the UK's 100 Largest Stocks for LSE 24
LSEG announced on Sept 1 a partnership with Payward to issue the 100 largest London-listed equities as 1:1-backed xStocks tokens and to list the full xStocks suite on its planned 24-hour venue LSE 24 in 2027, subject to regulatory approval. UK investors are currently excluded.
London Stock Exchange Group said on September 1 that it will work with Payward, the parent company of crypto exchange Kraken, to bring tokenized versions of London-listed shares to market. In the coming weeks the 100 largest London-listed companies are to be issued as xStocks, Kraken's 1:1-backed tokenized equities, and LSE plans to list the full xStocks suite on LSE 24, the round-the-clock trading venue it intends to launch in 2027, subject to regulatory approval.
The mechanics
The tokens are issued by Backed Assets (JE) Limited in Jersey under Liechtenstein FMA oversight and passported into the European Economic Area. They are available in more than 110 countries, but UK investors are explicitly excluded for now.
LSE 24 is slated for client testing by the end of 2026 and launch in the first half of 2027, trading from 17:00 to 07:50 London time with a 30-minute end-of-day pause, according to Reuters and CryptoDaily.
xStocks has generated roughly $40 billion in cumulative trading volume with about $20 billion settled on-chain and more than 200,000 holders since launching in June 2025, per Forkast; Crowdfund Insider cites a figure above $35 billion.
What the parties said
Julia Hoggett, chief executive of London Stock Exchange plc, said tokenisation has the potential to change how investors access and how issuers use financial markets, but must develop in a way that preserves the trust, rights and role of regulated markets. Payward said on X that LSE plans to list the full xStocks suite on LSE 24 subject to regulatory approval, and that the 100 largest London-listed companies will be tokenized in the coming weeks, tradable around the clock and 1:1 backed. The xStocks team said adding London-listed equities brings one of the world's largest public markets into its framework and gives UK-listed companies a new global distribution channel.
Market reaction and context
LSEG shares fell about 2% in early London trading on the day of the announcement. The stock is up roughly 20% since activist investor Elliott disclosed a stake in February but remains around 28% below its February 2025 peak, per Reuters. The move follows Deutsche Börse's $200 million purchase of a 1.5% stake in Kraken in April 2026 and comes despite the World Federation of Exchanges urging regulators to restrict tokenized stocks.
The irony is hard to miss: a London exchange is tokenizing London stocks that Londoners cannot buy in token form. Until the UK's own regime for tokenized securities catches up, the product is aimed at overseas investors, and holders should read the issuer's terms carefully, since a 1:1-backed token is a claim on the issuer, not a directly registered share.