The London Stock Exchange is partnering with Payward, the parent company of Kraken, to bring shares of the 100 largest London-listed companies onto the xStocks tokenization platform. The initiative could eventually allow these blockchain-based versions of UK equities to become available through the exchange’s planned 24-hour trading infrastructure.
- The first tokenized UK shares are expected to launch through xStocks in the coming weeks.
- The initial rollout will cover the 100 largest London-listed companies.
- xStocks has already processed more than $40 billion in total trading volume.
- Nearly $20 billion of that activity has settled onchain.
- More than 200,000 investors hold xStocks, according to the companies.
- UK-based investors currently cannot access xStocks.
London’s Biggest Companies Head to the Blockchain
The London Stock Exchange is moving deeper into the tokenization of traditional financial assets through a new partnership with Payward, the company behind Kraken.
Under the agreement, shares representing the 100 largest companies listed in London will be introduced to Payward’s xStocks ecosystem.
The first group of tokenized equities is expected to become available within the coming weeks.
The initiative represents another step toward connecting traditional stock markets with blockchain infrastructure, allowing investors to interact with tokenized versions of established publicly traded companies.
How Tokenized Shares Work
Each xStock is designed to be backed one-for-one by its corresponding underlying security.
Rather than existing solely within a traditional brokerage account, the blockchain-based representation can be transferred across supported networks and used within compatible digital-asset infrastructure.
Depending on the jurisdiction and platform, investors can potentially:
- Trade tokenized shares around the clock
- Transfer assets to self-custody wallets
- Move tokens between compatible blockchain applications
- Use tokenized equities within supported onchain financial services
This structure effectively connects traditional securities with the flexibility of blockchain-based settlement and transfers.
International Access, But Not Yet for UK Investors
The planned expansion could make tokenized versions of major UK-listed companies available to eligible investors across more than 110 countries.
There is an important limitation, however: xStocks are currently unavailable to investors located in the United Kingdom.
That means the partnership does not immediately provide British retail investors with direct access to tokenized versions of the country’s largest listed companies.
The potential significance instead lies in expanding international access to UK equities through blockchain-based instruments.
xStocks Expands Beyond US Equities
The London initiative is part of Payward’s broader effort to expand xStocks beyond its original focus on US-listed companies.
Earlier international expansion plans included a partnership with financial infrastructure provider GTN, designed to introduce tokenized equities from additional markets.
Hong Kong-listed companies were among the initial targets, with further expansion planned across the UK, Europe, South Korea, and other jurisdictions where regulations permit.
GTN’s infrastructure is intended to provide services including execution, custody, and record keeping across more than 90 international financial markets.
At the time of that expansion, xStocks already supported more than 500 tokenized assets and had processed over $37 billion in transaction volume.
Tokenized Stock Market Surpasses $40 Billion in Volume
The latest figures show how quickly tokenized equities have expanded.
xStocks has now recorded more than $40 billion in cumulative trading volume, while almost $20 billion of that activity has been settled directly on blockchain networks.
The platform also has more than 200,000 holders, indicating growing participation in tokenized versions of traditional securities.
The addition of major UK companies could further increase activity by introducing another large pool of globally recognized equities to the platform.
Could London Eventually Offer 24-Hour Stock Trading?
One of the most significant aspects of the partnership is its potential connection to the London Stock Exchange’s planned 24-hour trading venue.
Traditional stock markets generally operate according to defined trading sessions, while blockchain networks can process transactions continuously.
Tokenized securities could therefore help bridge the gap between conventional market infrastructure and the always-on nature of digital assets.
However, the partnership does not mean that UK stocks will immediately begin trading around the clock through the London Stock Exchange itself. The initial rollout is focused on making eligible equities available through the xStocks framework.
Any future integration with the exchange’s planned 24-hour venue would depend on the development of the relevant infrastructure, regulatory approvals, and market arrangements.
Traditional Finance and Blockchain Converge
The partnership highlights a broader transformation taking place across financial markets.
Stock exchanges, asset managers, fintech companies, and cryptocurrency firms are increasingly exploring how blockchain technology can be used to represent and transfer traditional assets.
Tokenization could potentially make securities easier to move between different financial systems while enabling faster settlement and greater interoperability with digital financial applications.
For Payward, adding major UK equities strengthens xStocks’ international reach.
For the London Stock Exchange, the collaboration provides another route into the rapidly developing tokenization market.
The immediate rollout will begin with 100 major UK-listed companies, but the larger story is the growing convergence between traditional equity markets and blockchain infrastructure potentially bringing global stocks closer to the always-on financial system envisioned by crypto markets.
