LSEG Unveils Plans to Launch Tokenised UK Shares Through Payward Partnership
The London Stock Exchange Group (LSEG) is expanding its digital markets strategy by introducing tokenised UK shares. The initiative, in partnership with Payward, aims to provide 24/7 blockchain-based trading while maintaining shareholder protections and governance standards.
LSEG plans to launch LSE 24, a round-the-clock trading venue, in the first half of 2025. Tokenised xStocks listings will be targeted for 2027, pending regulatory approval. The partnership with Payward will allow UK-listed companies to be represented as blockchain-based tokens and traded around the clock.
Regulatory concerns over risks to market integrity and investor protection are growing. The World Federation of Exchanges has warned that tokenised stocks could create new risks for investors and damage market integrity. Julia Hoggett, CEO of London Stock Exchange and head of digital and securities markets at LSEG, notes that 'tokenisation has the potential to change how investors access, and how issuers use, financial markets, but it must develop in a way that preserves the trust, rights and role of regulated markets.'