London Stock Exchange, Kraken Parent Payward Plan Tokenized Trading in Top UK Stocks
Summary
- The London Stock Exchange agreed with Kraken parent Payward to put shares of the 100 largest UK-listed companies by market capitalization on the blockchain through tokenized stock platform xStocks.
- xStocks has recorded more than $40 billion in cumulative trading volume, with about $20 billion settled on-chain and more than 200,000 holders, according to Payward.
- Under the agreement, UK-listed stocks will be offered to investors in more than 110 countries through blockchain infrastructure, while LSE plans to list xStocks on LSE 24 for round-the-clock trading and later expand into tokenized stocks from the US, the European Union, the UK and Hong Kong, as well as additional asset classes.
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The London Stock Exchange is partnering with Payward, the parent company of crypto exchange Kraken, to put shares of major UK-listed companies on the blockchain.
CoinDesk reported on Sept. 1 that LSE and Payward agreed to issue tokenized versions of shares in the 100 largest UK-listed companies by market capitalization through Payward’s xStocks platform. xStocks are tokens backed one-for-one by underlying shares and can trade 24 hours a day, seven days a week on centralized exchanges, self-custody wallets and on-chain applications.
Payward says xStocks has recorded more than $40 billion in cumulative trading volume in just over a year since launch. About $20 billion of that has been settled on-chain, and the number of holders now tops 200,000.
The agreement would make UK-listed stocks available through blockchain infrastructure to investors in more than 110 countries. xStocks is not currently available to investors in the UK. Subject to regulatory approval, LSE plans to list xStocks on LSE 24, its recently announced around-the-clock trading platform, and support trading there. It also plans to expand into tokenized stocks from the US, the European Union, the UK and Hong Kong, as well as additional asset classes.
The companies also agreed to examine a structure under which LSE would issue stock tokens directly. In that case, LSE member firms would be able to issue and manage shares directly on-chain with the same rights and full compatibility as conventional equities.
“The assumption that crypto and traditional finance would collide was wrong from the start,” Arjun Sethi, Payward’s co-chief executive officer, said.
Julia Hoggett, LSE’s chief executive officer, said tokenization should develop in a way that preserves trust in regulated markets and protects investor rights, reflecting a more cautious stance.
