The London Stock Exchange has partnered with Payward, the parent company of Kraken and the developer of the xStocks framework, to use blockchain technology for the top 100 listed companies in the UK. Within weeks, the first London-listed xStocks will be announced, providing eligible investors in over 110 countries exclusive 24/7 onchain access to significant UK stocks. While getting ready for possible xStock trading on LSE 24, the collaboration will also investigate how regulated exchange infrastructure might link with blockchain-based distribution.

xStocks Bring London Equities Onchain

Payward will tokenize the top 100 companies listed on the London Stock Exchange as xStocks as part of the agreement. With blockchain-based programmability and ongoing access, each xStock is a tokenized version of the corresponding publicly traded securities, backed 1:1 and intended to track its underlying performance.

xStocks can travel between centralized exchanges, self-custodied wallets, and supported onchain apps, in contrast to traditional shares held through a brokerage account. Kraken and other xStocks Alliance platforms will make the first London-listed xStocks accessible to investors in over 110 markets. Nevertheless, investors in the UK are presently unable to access xStocks.

The expansion coincides with a sharp rise in activity on the xStocks framework. According to Payward, in less than a year, xStocks have produced over $40 billion in total volume, with over 200,000 holders and over $20 billion settled onchain. Additionally, through tokenized exposure, the platform has given investors early access to a few U.S. companies prior to their public debuts.

LSE 24 Could Add Regulated 24/7 Trading

The agreement extends beyond using crypto-native platforms to sell London-listed shares. The London Stock Exchange intends to list xStocks and facilitate their trading on LSE 24, its recently announced 24-hour trading platform, subject to regulatory permission.

As xStocks grows across markets, the proposed connection would increase the assets accessible through LSE 24. Along with other asset classes, tokenized stocks that reflect securities from the US, EU, UK, and Hong Kong are anticipated to be part of the supported suite.

This could give LSE member companies a way to consistently trade a larger variety of international tokenized marketplaces via regulated exchange infrastructure. Additionally, rather than presenting the two systems as rival alternatives, the move connects Payward's onchain distribution mechanism with the current market architecture of the London Stock Exchange.

In order to facilitate the issuing, recording, transfer, asset servicing, and settlement of digital securities within a regulated framework, LSEG is separately building infrastructure, such as its Digital Securities Depository (DSD). In both on-chain and off-chain settings, the Digital Settlement House (DiSH) is intended to facilitate programmatic and immediate settlement between separate payment networks.

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

Payward & LSE Explore Native Onchain Shares

Additionally, the agreement goes beyond tokenized versions of current shares. The concept of native LSE-issued equity tokens, in which securities might be issued and serviced directly onchain while retaining the same rights and complete fungibility as conventional shares, will be investigated by Payward and the London Stock Exchange.

In contrast to the current xStocks structure, that would be a distinct model. Native equity tokens could link issuance, trading, and settlement more directly to onchain infrastructure while maintaining the shareholder protections and governance standards associated with regulated public markets, as opposed to merely offering blockchain-based exposure to an already-listed security.

According to Julia Hoggett, CEO of LSE, tokenization must advance in a way that protects the role, rights, and confidence of regulated markets. Arjun Sethi, co-CEO of Payward, similarly characterized the collaboration as bringing traditional finance and cryptocurrency together, claiming that blockchain can alter the way shares are issued, sold, settled, and transferred.

The immediate opportunity for London-listed businesses is an extra worldwide distribution channel. The impending xStocks launch offers investors outside of the UK a new, round-the-clock method of accessing large London-listed businesses. While regulatory approval is still pending for the prospective LSE 24 listing and native onchain equity structures, the first phase is expected to launch soon.

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