LSE to list tokenized UK stocks on 24-hour venue from 2027

A one-to-one backed token representing a UK-listed share will begin trading on the London Stock Exchange's round-the-clock LSE 24 venue in 2027, under a tie-up with Payward, the parent of crypto exchange Kraken, that aims to widen access to capital markets.

"Tokenization has the potential to change how investors access, and how issuers use, financial markets, but it must develop in a way that preserves the trust, rights and role of regulated markets," Julia Hoggett, chief executive of London Stock Exchange and head of digital and securities markets at LSEG, said.

The xStocks tokens, each backed one-for-one by a conventional share, will trade on LSE 24, a venue running 24 hours a day, five days a week that is scheduled for testing at the end of 2026. Token holders get limited voting rights and no legal ownership or dividend entitlement, according to Payward. The listing depends on approval from the Financial Conduct Authority.

The move makes the London bourse the latest traditional exchange operator to test blockchain-based equities, following Nasdaq's August agreement to acquire LeveL Markets and Deutsche Börse's $200 million investment in Payward in April. The value of tokenized stocks rose 15 percent in the past 30 days to $2.53 billion, with holders up 153 percent to 2.45 million, RWA.xyz data shows.

The partnership, first reported by the Financial Times, was confirmed by Payward chief commercial officer Mark Greenberg. Simon McQuoid-Mason, who leads new product development and market structure at the LSE, said a tokenized equity gives synthetic exposure to the underlying stock while the exchange explores how a full rights-bearing token could be developed.

The initiative extends the LSE's digital asset buildout, which includes a blockchain-based settlement service announced in February and a digital settlement house designed to let banks and brokers settle digital assets around the clock. Night-time trading in tokenized stocks will be subject to the same regulated market checks as ordinary share trading, the exchange said.

The push comes as the UK government and regulators seek to expand digital asset markets. Last week the Bank of England received a new secondary objective to support innovation in payments and digital money, underlining the country's ambition to become a digital asset hub.

Other operators are moving in the same direction. Nasdaq partnered with Payward and its Backed subsidiary in March to develop an equities transformation gateway, while Intercontinental Exchange, parent of the New York Stock Exchange, invested in crypto exchange OKX to bring NYSE-listed tokenized stocks to that platform from the second quarter of 2026. CME Group has also expanded its digital asset derivatives plans this year.

The World Federation of Exchanges last year called on securities regulators to clamp down on tokenized stocks, saying they create new risks for investors and could harm market integrity. Whether the LSE's first-mover bet on a regulated venue wins over skeptics will hinge on the FCA's verdict and how closely token holders' rights track those of ordinary shareholders.

This article is for informational purposes only and does not constitute investment advice.