LSEG and Kraken Bring British Stocks Onchain
Through Kraken’s xStocks framework, the 100 largest British stocks are expected to become tradable 24/7, if regulators approve. It fits into the broader rise of tokenized equities at LSEG and other exchange companies.
Key Takeaways
- LSEG and Payward want to put the 100 largest publicly listed British stocks on the blockchain through the xStocks framework.
- The xStocks tokens are fully backed by the underlying shares and can be traded 24/7 on platforms, wallets, and onchain apps.
- The rollout still depends on regulatory approval; London Stock Exchange Group shares fell 2% in London.
LSEG and Payward, the company behind crypto exchange Kraken, want to put the 100 largest publicly listed British stocks on the blockchain. The project is set to launch in the coming weeks through Payward’s xStocks framework, which lets traditional stocks be traded as tokens on centralized platforms, in crypto wallets, and in onchain apps.
What xStocks Does
According to the companies, the xStocks tokens are fully backed by the underlying shares. That means they can be traded 24/7 while still tracking the price of the real stock. That is different from a regular position in a brokerage account, which only moves during market hours and is settled through multiple parties.
The move fits into a broader trend where real-world assets like stocks, bonds, and commodities are being tokenized more and more often. In the crypto sector, that has long been seen as a way to make trading and settlement simpler, although tokenization does not automatically mean every product will instantly become more liquid.
Growth of Tokenized Equities
Payward says xStocks have processed more than $40 billion (€34.5 billion) in trading volume in a little over a year. Nearly $20 billion (€17.2 billion) of that was settled onchain, and the number of holders is now above 200,000. The market for tokenized equities has also grown more broadly in recent months: in June, total market value was above $51 billion (€44 billion), according to recent market data, after a 40% increase.
Other major players are moving in the same direction too. The New York Stock Exchange is working on a platform for 24/7 trading in tokenized stocks and ETFs, while Payward earlier this year also teamed up with Nasdaq on infrastructure around tokenized equity markets. That shows tokenization is no longer just a niche topic in crypto, but is also getting more and more attention from established exchange companies.
Why This Matters for Europe
For European crypto and investing watchers, the main point is that a major exchange like LSEG is now explicitly placing tokenized stocks alongside traditional trading. The plan could blur the line between crypto infrastructure and regulated markets even further, but the companies do stress that this has to happen within regulation and while preserving rights. LSEG also said the rollout still depends on regulatory approval.
London Stock Exchange Group shares fell 2% in early trading in London.
