London Stock Exchange to Launch Tokenized Stock Trading in Partnership with Kraken Parent
The London Stock Exchange (LSE) and cryptocurrency exchange Kraken have announced a partnership to launch trading of tokenized stocks representing major UK equities on LSE's new night-time trading platform, LSE 24, set to begin operations in 2027. The platform will offer 24/5 trading, enabling fractional ownership of digital assets. This move aligns with a growing trend among traditional financial institutions leveraging blockchain technology to expand stock market capabilities.
LSE Partners with Payward, Kraken's Parent Company
The London Stock Exchange (LSE) has partnered with Payward, the parent company of cryptocurrency exchange Kraken, to introduce tokenized stocks that track leading UK equity prices. Mark Greenberg, Payward's Chief Commercial Officer, shared these details with the Financial Times in a report on Tuesday. The official announcement regarding the launch of the night-time trading venue LSE 24 was made on July 21.
The LSE 24 platform will operate 24 hours a day, five days a week, providing investors with the flexibility to trade tokenized stocks with fractional ownership and greater accessibility.
Traditional Exchanges Embrace Tokenization Trend
LSE is among the latest traditional stock exchanges adopting blockchain-based solutions to enable 24/5 trading of tokenized stocks and fractional ownership. Other major institutions involved include Nasdaq, CME Group, and Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE).
In August last year, Nasdaq acquired LeveL Markets, the third-largest US alternative trading system by volume, as part of its strategy to develop tokenized markets with round-the-clock trading. ICE also invested in crypto exchange OKX to enable trading of NYSE-listed tokenized stocks starting in Q2 2026.
Additional Investments and Initiatives in Tokenized Financial Products
In March, Nasdaq partnered with Payward and its Backed subsidiary—which operates the xStocks platform—to build an equities transformation gateway, based on Nasdaq’s September 2025 filing for equity tokenization with US regulators.
In April, Deutsche Börse invested $200 million in Payward to broaden access to blockchain-based securities and tokenized investment products. CME Group announced plans to list futures contracts on cryptocurrencies Cardano (ADA), Chainlink (LINK), Stellar (XLM), followed later by Avalanche (AVAX) and Sui (SUI), illustrating centralized exchanges’ growing engagement with digital assets.
Growth of the Tokenized Stock Market
Data from RWA.xyz shows that the total value of tokenized stocks increased by 15% over the past 30 days, reaching $2.53 billion. The number of tokenized equity holders surged by 153% to over 2.45 million.
This growth reflects a rising investor interest in tokenized instruments and the potential of tokenized stocks to offer an alternative to traditional market assets.
Why it matters
The announcement of LSE’s partnership with Payward/Kraken to launch tokenized stocks on the new night-time trading venue LSE 24 represents a significant step toward integrating blockchain technologies into traditional UK stock markets. This initiative expands investor access by enabling round-the-clock trading and fractional ownership, which had been limited on conventional exchanges. It aligns with a broader trend of global financial institutions recognizing the benefits of tokenization for liquidity, transparency, and market accessibility. The increase in both the value and holders of tokenized stocks demonstrates growing trust and interest in these digital products, potentially influencing the future evolution of the financial industry and investment methods.
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