The London Stock Exchange is partnering with Payward, owner of crypto venue Kraken, to launch tokenised stocks on its new night-time trading venue from 2027. The initiative will allow traders access to tokens tracking the share prices of some of the UK’s biggest equities, each backed 1:1 by conventional shares but offering limited voting rights and no dividend entitlements. Payward’s x Stocks platform will soon offer tokenised versions of the UK’s 100 biggest stocks.

Simon Mc Quoid‑Mason, leading new product development at the LSE, said the tokens provide synthetic exposure to underlying securities and are part of the exchange’s strategy to develop regulated digital markets. Trading will be subject to the same regulated market checks as ordinary stocks to ensure prices reflect the main market and trade within a fair band. The LSE listing depends on approval from the Financial Conduct Authority, with trading expected to start in 2027.

The move aligns with broader efforts by the UK government and financial regulators, including the Bank of England’s new secondary objective to boost innovation in payments and digital money, to position the UK as a competitive hub for digital assets. Mark Greenberg, Payward’s chief commercial officer, noted demand from global investors seeking low-cost access to LSE assets via on-chain lending wallets and easy movement between crypto exchanges and wallets.