Kraken parent company partners with the LSE; top 100 UK stocks will be tokenized on the blockchain in as little as a few weeks
Traditional securities exchanges are accelerating their expansion into the tokenization market. Payward, the parent company of the cryptocurrency exchange Kraken, announced on September 1 its cooperation with the London Stock Exchange (LSE), preparing to bring the shares of the 100 largest companies listed in London onto the blockchain, and offering tokenized versions through the xStocks framework.
According to the plans by both parties, the first batch of UK stock xStocks is expected to be rolled out over the coming weeks, and trading will be supported via Kraken and other platforms in the xStocks Alliance. These tokens will be backed 1:1 with the actual shares, enabling investors to gain price exposure to the corresponding stocks via the blockchain.
xStocks allows tokens to be transferred between supported platforms, and it can also be used with self-custody wallets and on-chain applications. Payward says that after UK stocks are added, the related products are expected to reach investors in more than 110 countries worldwide.
However, at present xStocks is not yet available for use by investors within the UK. The actual regions where the products are supplied still depend on regulatory requirements in each country.
This collaboration also lets the London Stock Exchange move further into the on-chain securities market. In addition to converting existing stocks into tokenized products backed 1:1, both parties are also preparing to explore issuing native on-chain stocks directly through London Stock Exchange infrastructure in the next phase—so that tokens and traditional stocks have the same rights and full interchangeability.
LSE 24 takes the baton—tokenized stocks target near-24/7 trading
Another key point of this collaboration is the new trading venue the London Stock Exchange is preparing to launch: “LSE 24.” Subject to obtaining regulatory approval, the London Stock Exchange plans to list xStocks on LSE 24, further extending the tradable window for UK stocks. LSE 24 is planned to operate Monday through Friday, starting trading every day at 5:00 p.m., running through to 7:50 a.m. the next morning. During this period, roughly 30 minutes are scheduled each day for daily settlement processing.
Therefore, LSE 24 is more precisely positioned as a “24/5” or near-24/7 weekly trading market, which is still different from the crypto industry’s always-on 24/7 model. Payward plans to further incorporate tokenized stocks from markets such as the United States, the European Union, the UK, and Hong Kong through this architecture, and gradually expand into other asset classes.
Traditional stocks are usually limited by securities exchange trading hours, and investors also need to complete trades through brokers, custodians, and clearing systems. Tokenized stocks, however, can be transferred via blockchain and connected to self-custody wallets and on-chain financial applications.
For international investors, these products may also reduce time constraints for cross-market trading. For example, when Asian investors previously traded UK or U.S. stocks, they often needed to coordinate with local market opening hours. With trading hours extended, it can increase operational flexibility for investors across different time zones.
xStocks trading volume surpasses $40 billion, with over 200,000 holders
Payward already has an existing tokenized stocks business as a foundation. xStocks was launched in June 2025, issuing tokenized products backed 1:1 by real shares via blockchain. Payward has since obtained the relevant business, and it is currently expanding xStocks to more trading platforms and financial markets.
Related news: 24/7 trading! Kraken to launch tokenized U.S. stocks—how is it different from ordinary stocks?
According to data disclosed by Payward, since xStocks launched more than a year ago, cumulative trading volume has surpassed $40 billion. Nearly $20 billion has been settled on-chain, and the number of global holders exceeds 200,000.
RWA.xyz data shows that the global tokenized stock market size is currently about $2.6 billion, of which xStocks accounts for about $620 million. The size ranks just behind Ondo at about $856 million and bStocks at about $621 million.
Image source: RWA.xyz. The global market size for tokenized stocks is currently about $2.6 billion, of which xStocks accounts for about $620 million.
Payward continues to expand its financial institution partnerships for xStocks. In March, the company partnered with Nasdaq to develop a tokenized stock conversion gateway, aiming to establish a connection mechanism between traditional stocks and on-chain securities. In July, it again partnered with financial infrastructure provider GTN to prepare to expand xStocks into markets such as Hong Kong, the UK, Europe, and South Korea.
Last month, Kraken also began offering trading of U.S. stocks and related xStocks services to clients in the European Economic Area (EEA) through its Cyprus-regulated entity.
From “stock mapping” to native on-chain stocks—traditional exchanges accelerate their positioning
The collaboration between the London Stock Exchange and Payward will further explore “native on-chain stocks” in the next phase. At present, xStocks mainly uses a 1:1 backing model, where the on-chain tokens correspond to traditional stocks held by the related underlying structure. Both parties are studying how LSE-listed companies could directly issue and manage on-chain stocks through exchange infrastructure, so that tokens and traditional stocks have the same rights and can be fully interchangeable.
London Stock Exchange CEO Julia Hoggett said that tokenization has the potential to change how investors access markets and how companies obtain funding. Such developments must continue to preserve the trust of regulated markets, investors’ rights, and the roles of market participants.
Similar setups are also underway at other major exchanges. Nasdaq has partnered with Payward to drive stock tokenization infrastructure. The parent company of the New York Stock Exchange (NYSE), Intercontinental Exchange (ICE), has recently continued to expand its tokenized securities business through investments and partnerships.
After the London Stock Exchange joins, the link between traditional exchanges and crypto markets continues to deepen. If regulatory approval proceeds smoothly, in the future, investors trading shares of UK large companies will be able to extend their access beyond traditional brokers and securities accounts to the exchange, self-custody wallets, and on-chain applications. The progress of LSE 24 will also become an important case to watch to see whether traditional stock trading hours can evolve toward a near-24/7 model.
“Tokenizing 100+ UK stocks! Kraken’s parent company teams up with the London Stock Exchange to enable around-the-clock trading.” This article was first published on “Crypto City.”