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London Stock Exchange plans tokenized versions of top UK stocks
The xStocks framework would enable one-to-one tokenized shares to trade 24/7 on centralized and onchain apps, and could expand access to LSE-listed equities across 110+ countries, subject to regulatory approval.
The London Stock Exchange is partnering with Payward, the parent company of Kraken, to bring tokenized versions of the 100 largest UK stocks listed on the LSE to a blockchain-based trading framework, according to CoinDesk.
The project would offer one-to-one-backed xStocks tied to underlying shares, designed to trade around the clock on centralized exchanges as well as via self-custody wallets and onchain applications. The LSE said traditional share ownership settles through exchange hours and intermediaries, while tokenized shares can move instantly 24/7 and keep tracking the same underlying price.
Pending regulatory approval, the LSE plans to list xStocks on its 24-hour venue, LSE 24, and is also exploring fully fungible equity tokens that carry the same rights as traditional shares. CoinDesk also notes that xStocks are not currently available to investors based in the UK.
Payward said xStocks have already scaled, generating more than $40 billion in total trading volume in just over a year, including nearly $20 billion settled onchain, with more than 200,000 holders. The agreement could also expand the investor base for UK-listed shares to more than 110 countries via blockchain rails, though the rollout is subject to regulatory approval.