Kraken parent Payward will tokenize the 100 largest London Stock Exchange-listed companies as xStocks, with the tokens 1:1-backed by the underlying shares. The London Stock Exchange plans to list the tokens on its LSE 24 extended-hours venue, subject to regulatory approval, and the two firms will also explore issuing native onchain equities.
Payward will tokenize the 100 largest companies listed on the London Stock Exchange as xStocks, according to a statement released on Tuesday. The first London-listed xStocks are expected on Kraken and other xStocks Alliance platforms in the coming weeks.
The tokens will be 1:1-backed representations of the underlying shares and will be available to investors in more than 110 countries, though xStocks are not currently available to UK-based investors.
LSE 24 listing depends on regulatory approval
Subject to regulatory approval, the exchange plans to list and support trading in the xStocks on LSE 24, its recently announced extended-hours venue, which is set to operate Monday through Friday from 5 p.m. to 7:50 a.m., with a 30-minute pause for end-of-day processing. According to LSE CEO Julia Hoggett: "we are exploring how issuers and investors can benefit from new forms of access".
The broader offering will span tokenized equities from the U.S., Europe, the UK, and Hong Kong, alongside other asset classes, for LSE members using the venue, Payward said. Beyond trading tokenized versions of existing shares, the firms will also explore native equity tokens issued through LSE infrastructure, carrying the same rights and full fungibility as traditional shares.
xStocks expansion follows Payward's tokenization push
The move extends Payward's tokenization framework for equities, which launched in June 2025 and was acquired by Payward in December. Since then, xStocks has processed over $40 billion in total volume across more than 200,000 holders, including nearly $20 billion settled onchain, according to the company.
In July, Payward partnered with GTN to expand xStocks into Hong Kong, the UK, Europe, and South Korea across a network spanning more than 90 markets. Kraken also launched U.S. stock trading alongside xStocks for European Economic Area customers last month through its Cyprus-regulated entity.
There is roughly $2.53 billion worth of tokenized equities in existence, according to RWA.xyz data, with about $606.6 million of that tokenized by xStocks — the second-largest issuer after Ondo, which has tokenized approximately $840.4 million. Payward reported second-quarter adjusted revenue of $508 million, up 17% year-over-year, while total platform transaction volume reached $310 billion.
Source: The Block
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