London Stock Exchange Partners with Payward for Tokenized Stocks

The London Stock Exchange (LSE) is collaborating with Payward to tokenize its 100 largest stocks. The partnership aims to issue tokens under the xStocks framework, which allows for the representation of asset ownership on a blockchain. This means that shares will remain and be held by a custodian while the tokens circulate on a digital network.

Each token represents its underlying share with a one-to-one guarantee. The first batch is expected to be available in the coming weeks, allowing investors in over 110 countries to access the platform. However, UK-based investors are not included due to regulatory restrictions.

The LSE plans to list xStocks on its new exchange venue, LSE 24, which will launch in 2027. This venue will operate from Monday to Friday, from 5:00 PM to 7:50 AM, with a 30-minute break for end-of-day processing.

The xStocks framework has already demonstrated success, with total volume exceeding $40 billion since its launch just over a year ago. Approximately $20 billion of this was settled on the blockchain, and the number of holders now exceeds 200,000.