London Stock Exchange Taps Blockchain for Round-the-Clock Trading

The London Stock Exchange Group (LSEG) is exploring the concept of tokenized UK shares on its new round-the-clock venue, LSE 24. The initiative, in collaboration with Payward, the parent company of crypto exchange Kraken, aims to list 'xStocks' on LSE 24 as soon as next year.

The tokenization process involves wrapping a normal listed share in a blockchain-based token that can trade more hours while preserving shareholder rights and regulated exchange protections. The goal is to make trading cheaper and more convenient by offering longer trading hours and faster settlement.

LSEG CEO Julia Hoggett has emphasized the importance of preserving trust and price formation through tokenization, as market structure, not technology, remains a significant challenge. If tokens trade when the main London market is shut, liquidity can be thin, prices can swing more easily, and any mismatch between the token and the 'real' share can undermine confidence.