London Stock Exchange is working with Payward, Kraken’s parent company, on a UK structure for tokenized equities. This is not a retail launch yet. The aim is to see whether blockchain-based share tokens can plug into regulated exchange and post-trade systems in the UK.
Payward’s xStocks model creates tokens tied to underlying shares. LSE and Payward are now testing how those tokens could be issued, settled, and serviced through the exchange’s own Digital Securities Depository. LSE has said it plans to list xStocks on LSE 24 in 2027, if regulators approve. That would mean near round-the-clock access outside London’s normal market hours, but still under UK rules and investor protections.
A major UK exchange is trying to bring tokenized shares inside the regulated market, instead of leaving them to offshore crypto venues. The real test now is whether custody, settlement, and investor rights can work as cleanly for tokenized shares as they do for conventional ones.