LSE TO TOKENISE 100 TOP LISTED COMPANIES: THE MOMENTUM IS BUILDING!
Updated: 6 days ago
The London Stock Exchange has agreed a partnership with Payward, the parent company of crypto exchange Kraken, to bring the UK's biggest listed companies onto the blockchain. Under the deal announced on Tuesday, Payward will issue the 100 largest London-listed companies as xStocks, its tokenised equity framework, with the first tokens expected on Kraken and other xStocks Alliance platforms within weeks.
Subject to regulatory approval, the LSE plans to list and support trading of the xStocks on LSE 24, the extended-hours venue it announced in July that will run Monday to Friday from 5pm to 7.50am with a 30 minute pause for end of day processing. The two firms will also explore native LSE-issued equity tokens with full shareholder rights and fungibility, a materially different product from the xStocks wrapper.
That distinction matters for anyone assessing what has actually changed. xStocks are not shares. They are loan notes, structured as tracker certificates issued by Backed Assets (JE) Limited, a Jersey company that holds the underlying stock as collateral and replicates the share price one to one. Holders get a claim against the issuer rather than shareholder rights, and redemptions settle in cash or crypto rather than delivery of the underlying shares. Tokenising London's biggest names extends their reach to investors in more than 110 countries without changing anything for existing domestic holders, and UK-based investors do not currently have access to the tokens themselves.
"By working with Payward, and continuing to collaborate across the market infrastructure ecosystem, we are exploring how issuers and investors can benefit from new forms of access while maintaining the standards that underpin public markets," LSE chief executive Julia Hoggett said in a statement.
The partnership sits inside a fast-expanding international push for xStocks. Launched in June 2025 and acquired by Payward in December, the framework has processed more than 40 billion dollars in cumulative volume across upwards of 200,000 holders, including close to 20 billion dollars settled onchain. In July, Payward partnered with Dubai's GTN to extend xStocks into Hong Kong, the UK, Europe and South Korea, and it has a separate tie-up with Deutsche Börse's Clearstream. The LSE deal effectively turns London into an overnight venue for tokenised exposure to shares listed on exchanges including the NYSE, Nasdaq, Deutsche Börse and the Hong Kong Stock Exchange, none of which are party to the arrangement themselves.
According to RWA.xyz data cited by The Block, there is roughly 2.53 billion dollars of tokenised equity in existence. xStocks accounts for about 606.6 million dollars of that, making it the second largest issuer behind Ondo, which has tokenised approximately 840.4 million dollars worth of equities.
For a UK audience watching the tokenised equity space chiefly through the lens of private company access and SEIS-stage fundraising, the LSE deal is a different animal: public, blue-chip and initially closed to UK retail participation. But it is still a significant credibility marker. When the operator of the UK's primary listing venue puts its name to a tokenisation partnership, it becomes harder for sceptics to dismiss tokenised equity structures as a niche crypto product rather than emerging market infrastructure.
Key takeaways:
The London Stock Exchange and Payward, Kraken's parent, will tokenise the 100 largest LSE-listed companies as xStocks, with the first tokens expected within weeks.
xStocks are loan notes backed one to one by the underlying shares, not the shares themselves, and are not currently available to UK-based investors.
Subject to regulatory approval, trading is planned on LSE 24, the exchange's new extended-hours venue, alongside a separate exploration of native, fully fungible LSE-issued equity tokens.
xStocks has processed over 40 billion dollars in cumulative volume since its June 2025 launch and is the second largest tokenised equity issuer by value after Ondo.
The deal is a public markets signal rather than a private company one, but it adds institutional credibility to tokenisation as UK market infrastructure more broadly.
Sources: The Block, Ledger Insights, CoinDesk
Frequently asked questions
What did the London Stock Exchange agree with Payward?
The London Stock Exchange agreed a partnership with Payward, the parent company of Kraken, under which Payward will issue the 100 largest London-listed companies as xStocks. The first tokens were expected on Kraken and other xStocks Alliance platforms within weeks of the announcement.
Are xStocks real shares?
No. xStocks are loan notes structured as tracker certificates issued by Backed Assets (JE) Limited, a Jersey company that holds the underlying stock as collateral. Holders get a claim against the issuer rather than shareholder rights, and redemptions settle in cash or crypto.
Can UK investors buy tokenised LSE stocks through xStocks?
UK-based investors do not currently have access to the tokens. The xStocks extend the reach of London's biggest names to investors in more than 110 countries.
What is LSE 24?
LSE 24 is the London Stock Exchange's extended-hours venue, running Monday to Friday from 5pm to 7.50am with a 30 minute pause for end of day processing. Subject to regulatory approval, the LSE plans to list and support trading of xStocks on it.
How big is the tokenised equity market and where does xStocks rank?
RWA.xyz data cited by The Block puts tokenised equity at roughly 2.53 billion dollars. xStocks accounts for about 606.6 million dollars, making it the second largest issuer behind Ondo at approximately 840.4 million dollars.
Comments