The London Stock Exchange is moving tokenized equities from crypto experimentation into regulated market infrastructure.
LSEG announced a partnership with Payward, Kraken's parent company, to explore tokenized public equity markets and how its Digital Securities Depository could support settlement and asset servicing. The project is expected to bring major UK-listed shares into Payward's xStocks framework.
Why this is different
The real issue is not whether a stock price can be represented by a token. It is whether the token preserves legal ownership, shareholder protections, dividends, voting and corporate-action rights.
LSEG says its proposed structure is designed to preserve the rights and protections of public-market shareholders.
LSE 24 changes the model
LSEG is also developing LSE 24, a 24-hour trading venue. Subject to approval, tokenized shares could eventually trade through regulated infrastructure while also moving through wallets and onchain applications.
Why it matters
The emerging stack is:
share → token → self-custody → 24/7 transfer → collateral → DeFi → derivatives.
That is the foundation of onchain brokerage.
Risks
Liquidity could fragment between traditional and tokenized forms. Dividends, voting, splits and takeovers require careful synchronization. Regulatory approval is still required.
What to watch next
Watch the first listed companies, legal fungibility with ordinary shares, shareholder-right implementation, LSE 24 liquidity and investor access.
FAQ
What are xStocks? Blockchain-based representations of underlying equities. Will UK shares trade 24/7? That is the intended direction, subject to approval. Are UK investors eligible now? Not currently.