London Stock Exchange partners with Kraken parent for tokenized UK stocks: FT
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The London Stock Exchange (LSE) has partnered with Kraken’s parent company, Payward, to launch tokenized stock trading on LSE’s new night-time trading venue, LSE 24, starting in 2027. These tokenized stocks will track leading UK equity products and allow 24/5 trading with fractional ownership. This collaboration was disclosed by Payward’s chief commercial officer, Mark Greenberg, in a Financial Times report.
Why it matters
The initiative positions the LSE among major traditional financial exchanges exploring blockchain-based tokenized securities offering extended trading hours and increased accessibility. According to the source, this move reflects broader institutional interest in tokenization for equities, following similar pursuits by Nasdaq, CME Group, and ICE.
Key context
The LSE 24 venue will operate Monday through Friday and enable night-time trading. Nasdaq previously partnered with Payward to develop a tokenization gateway and plans to acquire an alternative trading system to extend tokenized markets. ICE is also working on NYSE-listed token stocks targeted for launch in 2026. Deutsche Börse invested $200 million in Payward to expand access to blockchain-based securities. CME Group is launching crypto futures linked to various tokens. Tokenized stocks’ total on-chain value recently rose 15% to $2.53 billion with a 153% increase in holders to 2.45 million.
Key numbers and entities
Key entities include London Stock Exchange (LSE), Kraken parent company Payward, Nasdaq, CME Group, ICE (NYSE’s parent), Deutsche Börse, and data provider RWA.xyz. The total value of tokenized stocks is $2.53 billion, with 2.45 million tokenized equity holders.
What remains unclear
The source does not specify the exact UK stocks to be tokenized, the regulatory framework governing this offering, details on fractional ownership mechanics, or how LSE 24’s trading infrastructure will integrate with existing systems. Funding arrangements and commercial terms between LSE and Payward are also not detailed.