The London Stock Exchange (LSE) is partnering with Payward, the parent company of Kraken, to bring the 100 largest companies listed on the exchange onto blockchain through its xStocks platform, in a move that could deepen the connection between traditional financial markets and digital-asset infrastructure.
Announced on September 1, 2026, the partnership is expected to introduce tokenized versions of major UK-listed equities while maintaining the regulatory framework and investor protections associated with traditional securities markets.
Under the agreement, Payward plans to add the 100 largest companies listed on the LSE to xStocks. Each token will be backed on a one-to-one basis by the corresponding underlying stock, allowing eligible investors in more than 110 countries to gain exposure to tokenized UK equities.
The initiative will bring tokenized versions of the LSE’s 100 largest listed companies to xStocks, with each digital token backed 1:1 by its underlying share.
UK investors, however, will not be able to trade the products when they initially launch because xStocks is currently unavailable in the UK. The companies have not yet provided a specific launch date, although the first tokenized products are expected to become available within weeks.
LSE explores blockchain settlement infrastructure
The partnership also includes an examination of how the LSE’s Digital Securities Depository, or DSD, could support the settlement and servicing of tokenized securities.
Any use of the DSD for the proposed blockchain-based securities infrastructure would remain subject to regulatory approval. The initiative could allow the exchange to assess how established securities-market infrastructure can interact with blockchain technology while retaining existing operational and regulatory standards.
The collaboration is therefore broader than simply creating digital representations of publicly traded shares. It seeks to explore how traditional exchange infrastructure and blockchain-based systems can operate together, potentially creating new methods for issuing, settling and servicing securities.
Tokenization could enable round-the-clock trading
One of the principal attractions of tokenized equities is the potential for more flexible trading. Traditional stock exchanges generally operate during designated market hours, whereas blockchain-based markets can operate continuously, allowing trading around the clock on supported venues.
The LSE also plans to list xStocks on its proposed LSE 24 trading venue in 2027, although the plan remains dependent on regulatory approval. The planned venue could provide another avenue for integrating tokenized securities into the exchange’s broader market infrastructure.
LSE Chief Executive Julia Hoggett indicated that tokenization could significantly alter how investors access financial markets and how companies use market infrastructure. At the same time, she emphasized the importance of preserving the confidence, rights and function of regulated markets.
Adding London-listed equities will bring one of the world's largest public markets into the xStocks framework, giving UK-listed companies a new global distribution channel.
— xStocks (@xStocksFi) September 1, 2026
That approach would allow the LSE to experiment with blockchain-based securities while retaining the established protections and responsibilities associated with listed equities.
xStocks has already processed billions in volume
The partnership builds on an existing tokenized-equity platform rather than launching blockchain-based stocks from scratch. Payward reported that xStocks has processed more than $40 billion in cumulative trading volume, including nearly $20 billion settled directly onchain. The platform has also accumulated more than 200,000 holders.
Payward co-CEO Arjun Sethi said the broader objective was to bring traditional financial markets and cryptocurrency markets onto shared technological infrastructure.
Payward and the London Stock Exchange are partnering to advance the tokenization of UK equity markets.
In the coming weeks, the 100 largest London-listed equities will go live as xStocks, bringing 24/7, programmable onchain access to investors in more than 110 countries.…
— Payward (@Payward) September 1, 2026
LSE and Payward will also examine the possibility of creating native equity tokens that could provide holders with rights comparable to those attached to conventional shares, potentially extending tokenization beyond simple representations of existing stocks.
For now, the immediate priority remains the planned xStocks rollout covering the 100 largest LSE-listed companies. The proposed LSE 24 listing represents a longer-term component of the partnership and remains subject to regulatory clearance.
The agreement signals a broader effort by the LSE to explore blockchain-based securities while keeping regulated-market protections and established financial infrastructure at the center of the transition.
