The London Stock Exchange is working with Payward, Kraken’s parent company, on a plan to tokenize the 100 largest London-listed companies and bring them on-chain as xStocks, according to a Sept. 1 report from CoinDesk. The tokens will represent the underlying shares on a 1:1 basis and will be made available to investors in more than 110 countries, though they are not currently being offered to local investors in the UK.
The first batch of London-listed xStocks is expected to go live in the coming weeks on Kraken and other platforms that support the xStocks alliance. Subject to regulatory approval, LSE also plans to list and support trading of these xStocks on LSE 24, its recently announced extended-hours venue.
The partnership goes beyond wrapping existing shares into tokenized products. Payward and LSE also plan to explore issuing native equity tokens through LSE infrastructure, with the aim of giving those tokens the same rights and full fungibility as traditional shares. By scale, the xStocks platform has recorded more than $40 billion in trading volume to date, with over 200,000 holders and nearly $20 billion settled on-chain.
The London Stock Exchange (LSE) is partnering with Payward, the parent company of Kraken, to tokenize the 100 largest companies listed in London and bring those shares on-chain as xStocks. CoinDesk reported the development on Sept. 1.
100 London-listed stocks to be issued as xStocks
Under the plan, Payward will tokenize those 100 London-listed stocks into xStocks. The tokens are designed as 1:1 representations of the underlying shares and will be available to investors in more than 110 countries, although they are not currently open to local UK investors.
The first batch of London-listed xStocks is expected to launch in the coming weeks on Kraken and other platforms in the xStocks alliance.
LSE 24 may also support trading
Subject to regulatory approval, LSE also plans to list and support trading of these xStocks on LSE 24, the exchange’s recently announced extended-hours trading venue.
Talks also cover native equity tokens
The collaboration is not limited to turning existing shares into tokens. Payward and LSE also plan to explore issuing native equity tokens through LSE infrastructure, with those tokens carrying the same rights as traditional shares and full fungibility.
xStocks has passed $40 billion in cumulative volume
By scale, the xStocks platform has recorded more than $40 billion in cumulative trading volume to date and more than 200,000 holders. Nearly $20 billion of that volume has been settled on-chain.
ABMedia said that for the tokenized real-world asset, or RWA, theme, direct participation by a major securities exchange gives stock tokenization stronger institutional legitimacy.
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