London Stock Exchange to list xStocks on blockchain

The London Stock Exchange (LSE) has announced a partnership with Payward, the parent company of crypto exchange Kraken, to explore how traditional exchange infrastructure and blockchain can be linked. Part of the plans is a tokenised share structure for the British market. If the regulator agrees, the LSE also wants to list and trade xStocks in 2027 on its 24-hour trading platform LSE 24.

In brief:

• LSE is working with Payward to connect regulated capital markets with blockchain ecosystems.
• The exchange is exploring a tokenised share structure that preserves shareholder rights and governance.
• Subject to regulatory approval, LSE wants to list xStocks on LSE 24 in 2027.

Shareholder rights remain central

As LSEG explains in the official announcement, the LSE wants to develop a model in which tokenised shares offer the same rights and protections as ordinary listed shares. This includes voting rights, shareholder protection and governance.

The collaboration with Payward focuses on access via digital wallets, blockchain infrastructure and connections with LSEG’s regulated market ecosystem. Together, the two parties want to build routes for issuers and investors to use both public and private blockchains, while meeting obligations in the areas of anti-money laundering and operational resilience.

Julia Hoggett, director of LSE plc and Head of Digital and Equity Markets at LSEG, says tokenisation could change the way investors access markets and companies use them, but this must happen in a way that preserves the trust, rights and role of regulated markets.

xStocks: shares on the blockchain

xStocks are tokens backed one-to-one by listed shares. They track the price of the underlying share and add the speed, programmability and 24-hour tradability of blockchain. Holders can move xStocks between centralised exchanges, self-custody wallets and applications on the blockchain, which is not possible with a regular share in a traditional investment account.

Arjun Sethi, co-director of Payward, says tokenisation not only increases access to markets, but also changes how shares are issued, traded and settled. According to him, the collaboration with LSE shows how these new forms of access can be combined with reliable market infrastructure.

The plan is part of a broader digitalisation programme at LSEG, which also includes initiatives such as the Digital Securities Depository (LSEG DSD) for settling tokenised securities and the Digital Settlement House (LSEG DiSH), a platform for direct and programmatic settlement between payment networks. A similar initiative in this area was also announced earlier this year by ICE and tZero, which are working together on a platform for tokenised securities.