LSE Partners with Kraken Parent on Tokenized UK Equities
The London Stock Exchange (LSE) has partnered with Payward, the parent company of cryptocurrency exchange Kraken, to bring tokenized versions of the UK's 100 largest listed companies onto blockchain networks.
Under the partnership, Payward will tokenize the companies through its xStocks framework in the coming weeks, subject to regulatory requirements. The tokens will represent the underlying shares on a 1:1 basis and will be designed to trade across centralized exchanges, self-custody wallets, and onchain applications.
The LSE estimates that tokenized UK equities could unlock $40 billion in trading volume, extending its market reach to over 110 countries. The partnership also plans to explore the possibility of LSE-issued equity tokens, which would allow exchange members to issue and service shares directly onchain.
Payward Co-CEO Arjun Sethi stated that the partnership reflects a broader convergence between crypto infrastructure and traditional financial markets. 'Tokenization hasn’t just widened who can reach a market, it changes how the market itself works,' Sethi said.