LSEG Brings Tokenized Shares to Global Markets

London Stock Exchange Group (LSEG) is taking another step into the world of cryptocurrency and blockchain technology. The company plans to launch tokenized UK shares, allowing global access to London-listed companies.

This move is part of LSEG's efforts to attract new customers and improve performance, which has been under pressure from activist investor Elliott Management. In February, the exchange operator announced a plan to build a blockchain-based settlement service.

Tokenized shares are blockchain-based tokens that represent ownership in publicly traded companies. They can be bought and sold by investors who trade cryptocurrencies, potentially increasing access to traditional stock markets.

LSEG is partnering with Payward, parent company of crypto exchange Kraken, to explore new ways of trading equities. The collaboration will list xStocks, tokenized versions of publicly traded shares, on LSE 24 in 2027, subject to regulatory approval.