Key facts
- London Stock Exchange Group (LSEG) is partnering with Payward, Kraken's parent company, to tokenize UK stocks.
- The initiative will introduce 'xStocks,' tokenized versions of the 100 largest UK-listed equities.
- The tokenized stocks are planned to launch in 2027 on LSEG's 24-hour trading venue, LSE 24.
- The move aims to offer 24/7 trading and fractional ownership, attracting retail investors.
- Other major exchanges like Nasdaq, ICE, and Deutsche Börse are also exploring tokenized equity offerings.
The London Stock Exchange (LSE) is set to launch tokenized UK stocks, branded as 'xStocks,' in partnership with Payward, the parent company of cryptocurrency exchange Kraken. The initiative, slated for a 2027 debut on LSE's new 24-hour trading venue, LSE 24, aims to offer 24/5 trading and fractional ownership of the 100 largest UK-listed equities. This move signifies a broader trend among traditional finance institutions to explore blockchain-based offerings and capture retail investors seeking round-the-clock trading access, a feature currently dominated by crypto platforms.
Other major exchanges are also venturing into tokenized markets. Nasdaq is acquiring LeveL Markets to bolster its tokenized offerings, while ICE has invested in OKX to bring NYSE-listed tokenized stocks to its platform. Deutsche Börse has invested $200 million in Payward to expand its blockchain-based securities offerings. In the derivatives space, CME Group has announced plans for new crypto futures contracts, including those for Cardano, Chainlink, Stellar, Avalanche, and Sui.
Data from RWA.xyz indicates a growing market for tokenized stocks, with a 15% increase in value to $2.53 billion over the past 30 days and a 153% surge in tokenized equity holders to 2.45 million.