LSEG Tokenises UK Shares in Global Expansion Push

LSEG plans to launch tokenised UK shares to expand global access to London-listed shares. The move is part of its efforts to embrace crypto assets and follows a February announcement that it would build a blockchain-based settlement service.

The partnership with Payward, the parent company of crypto exchange Kraken, will explore new ways to trade on equity markets. LSEG aims to enable UK-listed companies to be represented as blockchain-based tokens, allowing them to trade round the clock while maintaining shareholder rights and governance standards.

LSEG plans to list xStocks, tokenised representations of publicly traded shares, on its upcoming 24-hour trading venue, LSE 24, in 2027, subject to regulatory approval. Proponents of tokenisation argue that it could revolutionise stock markets by allowing shares to be traded and settled instantly, boosting liquidity and reducing transaction costs.

However, the World Federation of Exchanges has expressed concerns about tokenised stocks, stating that they create new risks for investors and could harm market integrity. LSEG CEO Julia Hoggett acknowledged these concerns, saying that 'tokenisation must develop in a way that preserves the trust, rights and role of regulated markets.'