LSE Joins Forces with Kraken to Bring Tokenized Stocks to Traditional Exchanges

The London Stock Exchange (LSE) has partnered with Payward, the owner of cryptocurrency exchange Kraken, to tokenize the largest LSE-listed companies. The first batch of tokenized stocks will be made available on Kraken and other participating platforms in the coming weeks.

Initially, only international investors will have access to these tokenized shares, as UK investors are not eligible to trade them. However, the partnership goes beyond just distributing tokens through crypto exchanges. The LSE plans to support xStocks trading through its new extended-hours venue, LSE 24, subject to regulatory approval.

This move could bring tokenized equities closer to traditional stock exchange infrastructure. LSE CEO Julia Hoggett said that the partnership is testing how issuers and investors can benefit from new forms of access while maintaining the standards of public markets.