The London Stock Exchange (LSE) plans to introduce infrastructure for tokenized equities in the U.K., combining the benefits of blockchain technology with the existing standards of regulated public markets.
London Stock Exchange Group (LSEG) announced plans to develop infrastructure for tokenized equities in the U.K. and begin round-the-clock trading in 2027. To develop the new business, the exchange partnered with Payward, the parent company of crypto exchange Kraken.
The initiative is part of LSEG’s broader program to digitize capital markets infrastructure. It already includes:
- LSE 24, LSEG’s announced venue for round-the-clock trading;
- LSEG Digital Securities Depository (LSEG DSD), depository infrastructure designed, among other functions, to support settlement using distributed ledger technology;
- LSEG Digital Settlement House (DiSH), a digital settlement system.
The exchange will explore using this infrastructure to settle tokenized assets and provide related asset servicing. The project will be subject to regulatory approval.
LSE expects tokenization to broaden investor access to public markets while preserving the legal rights associated with share ownership. For issuers, the new model could provide additional routes to market and new ways to reach investors.
Another part of the project centers on LSE’s partnership with Payward. The companies plan to explore integrating regulated exchange infrastructure with digital wallets and systems that interact directly with blockchain networks. The goal is to connect traditional public markets with public and private distributed ledgers while minimizing isolated pools of liquidity.
The new infrastructure will also need to comply with existing financial regulations. In particular, the partners plan to address anti-money laundering (AML) requirements, operational resilience standards, and other obligations applicable to regulated market participants.
The practical phase of the partnership is scheduled for 2027. Subject to regulatory approval, the London Stock Exchange plans to list xStocks and then begin trading the instruments on LSE 24.
xStocks are expected to provide one way to bring public market instruments onto blockchain infrastructure. The model could enable longer trading hours and digital asset transfers while maintaining a link to the price of the underlying security.
Julia Hoggett, CEO of LSE plc and Head of Digital and Securities Markets at LSEG, said tokenization could change how investors access financial markets and how issuers use them. She added that the technology should develop in a way that preserves trust, investor rights, and the role of regulated markets.
Arjun Sethi, Co-CEO of Payward, said connecting traditional financial infrastructure with blockchains could change access to securities as well as how they are issued, traded, settled, and transferred.
LSE ultimately expects to integrate tokenized securities into regulated public market infrastructure instead of creating an entirely separate system for them.
In September 2025, LSE representatives announced the launch of a blockchain-based tokenization platform designed to accelerate and streamline transactions involving traditional financial assets in private markets.
