London Stock Exchange Teams Up With Kraken Parent for Tokenized UK Stocks: FT

The London Stock Exchange Group (LSEG) is reportedly preparing to bring tokenized stock trading to its next-generation venue in partnership with Kraken’s parent company, Payward. The plan, described by Payward’s chief commercial officer Mark Greenberg in a Tuesday report, targets access to tokenized stocks that track major UK equity products starting in 2027.

According to the Financial Times, the tokenized equities would be listed on LSE’s new night-time trading platform, LSE 24—an initiative designed to run 24/5 trading from Mondays through Fridays. LSE 24 was announced by the exchange operator on July 21.

Key takeaways

• LSEG is moving tokenized equity exposure into a regulated trading venue, with Payward linked to the rollout.
• The targeted launch window for tokenized stocks tracking leading UK equities is 2027.
• Trading would take place on LSE’s planned 24/5 system (LSE 24), aimed at extending market hours versus traditional schedules.
• The announcement places London among several major TradFi firms pursuing tokenized stock products, including Nasdaq and ICE.
• Tokenized stock adoption continues to expand, with onchain totals and holder counts rising as measured by RWA.xyz.

How LSE 24 and Payward could change UK market access

LSE 24 is central to the move. Rather than limiting tokenized assets to a separate experimental platform, the approach described by Payward connects tokenized stocks to a trading venue being built by the London exchange itself. The claimed operating schedule—24/5—matters for investors and trading desks that want greater continuity across the week, particularly around regional evening hours and the transition from Asia to Europe.

For issuers and liquidity providers, tokenization can also shift how equity exposure is distributed and held, including the possibility of fractional ownership depending on the product structure. However, what exactly will be offered—such as which specific UK equity products are covered and how settlement and custody will operate in practice—was not detailed in the excerpted reporting.

Still, the direction is clear: tokenized stocks are being treated less like a standalone blockchain concept and more like an extension of mainstream market infrastructure.

LSE joins a broader tokenized equities race in TradFi

LSE’s reported partnership with Kraken’s parent Payward adds another traditional exchange operator to a trend that has accelerated across major markets. The article notes that other established players are also exploring tokenized equity offerings that can be traded around the clock or with extended hours.

In the United States, Nasdaq agreed to acquire LeveL Markets in August, framing the deal as part of a broader push into tokenized markets with round-the-clock trading capabilities. In Europe, ICE—the parent of the New York Stock Exchange—has also been linked to bringing tokenized stocks to its platform as part of a wider tokenized securities initiative.

Meanwhile, Deutsche Börse has reportedly invested in Payward, citing plans to broaden access to blockchain-based securities and tokenized investment products. Those efforts build on a prior relationship involving Kraken and Payward.

Beyond spot equities, the push is visible across derivatives infrastructure as well. The reporting also points to CME Group’s plans for crypto futures tied to networks including Cardano, Chainlink, and Stellar, as well as later additions involving Avalanche and Sui, each subject to regulatory approval. Taken together, these moves suggest that tokenization is not confined to equity settlements; it is increasingly being treated as a multi-asset market modernization theme.

What the onchain data says about tokenized stocks

Adoption indicators for tokenized equities continue to strengthen. According to data from RWA.xyz, the value of tokenized stocks rose by 15% over the prior 30 days to $2.53 billion. Over the same period, the number of tokenized equity holders increased by 153% to 2.45 million.

These figures do not directly confirm that LSE 24’s product will match these totals or replicate the same user base, but they provide context: tokenized equity participation appears to be expanding rather than stalling. That matters for regulators and market operators because sustained growth makes it more likely that tokenized securities move from pilot programs to repeatable offerings—especially when supported by established venues.

Investors should also note the asymmetry between “onchain growth” and “regulated venue readiness.” Tokenized stocks can exist onchain in various forms, while access through major exchanges typically requires product-specific compliance, market structure approvals, and operational integration that can take longer to execute than blockchain experimentation.

What to watch before 2027

The most actionable information missing from the excerpt is how LSE’s tokenized stock program will be structured end-to-end—particularly around custody, settlement mechanics, and the exact set of UK equity products to be tracked. As with any tokenized securities rollout on a major exchange, regulatory clarity and operational details will likely be as important as the headline partnership.

Readers should watch for further LSEG and Payward updates on product scope, the mechanics of LSE 24, and how the exchange plans to integrate tokenized equities into existing market and investor protections. With TradFi players increasingly converging on tokenized markets, those implementation specifics may determine whether tokenized equities become a practical alternative for broad investor access—or remain a niche parallel market.