The London Stock Exchange has partnered with Payward, Kraken’s parent company, to tokenize 100 of Britain’s largest listed companies through the xStocks framework. The deal was announced Monday and Payward says the products will launch within weeks for eligible investors across more than 110 countries, though UK-based investors are excluded from the initial rollout.
The tokenized shares will provide one-to-one backed digital representations of underlying equities, offering economic exposure and reinvested dividends but no voting rights. Holders can move tokens to self-custody wallets and trade around the clock, including weekends, though pricing outside standard market hours carries additional spread risk.
Subject to regulatory approval, the LSE plans to list these xStocks on LSE 24, its near-continuous trading venue currently scheduled for client testing by end-2026. The exchange originally prioritized exchange-traded products for first-half 2027 launch, with equities to follow later.
FXnCO Insight
Overseas traders will gain continuous onchain access to UK blue chips before domestic investors, creating immediate regulatory arbitrage opportunities and potential pricing dislocations during off-hours trading.
Source: Finance Magnates