LSE and Payward Unite to Bring UK Stock Tokens onto Blockchain

The London Stock Exchange and Payward are teaming up to bring tokenized versions of major U.K.-listed shares onto blockchain, aiming to connect regulated market infrastructure with 24-hour trading and settlement. Under their partnership, xStocks, the tokenized equities framework developed by Payward, will tokenize the 100 largest companies listed in London.

The xStocks are backed 1:1 by a publicly traded share and track the performance of the underlying security. They can move between centralized exchanges, self-custody wallets, and onchain applications, supporting round-the-clock trading.

The initiative could eventually give LSE member firms access to tokenized equities through regulated market infrastructure while extending trading beyond conventional exchange hours. Payward Co-CEO Arjun Sethi said the partnership reflects a shift away from the idea that crypto and traditional finance must compete, stating 'The real opportunity is what happens when they run on the same rails.'

Julia Hoggett, CEO of LSE plc and LSEG's Head of Digital and Securities Markets, emphasized the need for tokenization to develop in a way that preserves 'the trust, rights, and role of regulated markets.' Payward says xStocks have already surpassed $40 billion in total volume, including more than $20 billion settled onchain, across over 200,000 holders.