LSEG Plans Tokenised UK Shares with Payward

The London Stock Exchange Group (LSEG) is taking another step into the world of cryptocurrency by planning to launch tokenised UK shares. This move, announced on September 1, aims to expand global access to London-listed companies and will be done in partnership with Payward, the parent company of crypto exchange Kraken.

The new initiative allows products linked to UK-listed shares to be represented as blockchain-based tokens, which can be sold to people who currently trade cryptocurrencies. This is part of LSEG's push into cryptocurrency, following its announcement in February that it would build a blockchain-based settlement service.

LSEG has been under pressure from activist investor Elliott Management, which disclosed a stake in February and led to the exchange operator's shares rising 20% since then. However, they remain 28% below their February 2025 peak.

The tokenisation of UK shares is seen as having potential to change how investors access financial markets and potentially boost liquidity and lower costs. However, there are also concerns about investor risks and market integrity, with the World Federation of Exchanges warning regulators to crack down on tokenised stocks last year.