The London Stock Exchange has partnered with Payward, the parent company of cryptocurrency exchange Kraken, to launch tokenized stock trading tracking leading UK equity products — with the new offerings set to live on the bourse’s planned night-time trading venue starting in 2027.
By Raj Patel | September 1, 2026
The plan, first reported by the Financial Times on Tuesday and confirmed by Payward chief commercial officer Mark Greenberg, would let investors buy and sell blockchain-based versions of UK stocks around the clock. The tokenized shares will be listed on LSE 24, the exchange’s new night-time venue announced on July 21 that will operate 24 hours a day, five days a week, according to Cointelegraph.
The Hook: Wall Street’s Night Owls Get a London On-Ramp
Tokenized stocks are digital tokens that track the value of a regular share — think of them as a receipt that lives on a blockchain instead of a broker’s ledger. Because blockchain markets never sleep, these tokens can trade on weekends and overnight, when traditional stock markets are closed. For regular investors, that means no more waiting until the morning open to react to overnight news.
The London initiative makes the LSE the latest traditional exchange operator to explore blockchain-based stock offerings that can be traded 24 hours a day with fractional ownership. Other major institutions exploring tokenized equity products include Nasdaq, CME Group and the Intercontinental Exchange, the parent company of the New York Stock Exchange.
On-Chain Evidence: The Tokenization Race Is Accelerating
The LSE-Kraken deal is not an isolated move. It caps a year of aggressive pushes into tokenized markets by the world’s largest traditional finance players:
- August: Nasdaq agreed to acquire LeveL Markets, the third-largest alternative trading system in the US by trading volume, as part of its push into round-the-clock tokenized trading
- April: Deutsche Börse invested 200 million USD in Payward to expand access to blockchain-based securities and tokenized investment products
- March: Nasdaq partnered with Payward’s Backed subsidiary — the issuer behind xStocks — to develop an equities transformation gateway, building on a tokenization proposal filed with US securities regulators in September 2025
- Earlier this year: ICE invested in crypto exchange OKX to bring NYSE-listed tokenized stocks to that platform starting from the second quarter of 2026
The market data backs the momentum. According to data provider RWA.xyz, the value of tokenized stocks increased by 15% in the past 30 days to 2.53 billion USD, while the number of tokenized equity holders grew by 153% to 2.45 million.
The Core Conflict: Speed Versus Structure
Why would a 300-year-old exchange partner with the parent of a crypto exchange? Survival and relevance. Retail investors increasingly expect the always-on trading experience they get from crypto platforms, and exchanges that cannot offer overnight access risk losing order flow to those that can. But tokenized stocks also raise real questions: How are they backed? Who holds the underlying shares? What happens if the token and the traditional share trade at different prices?
The 2027 timeline suggests the LSE is being deliberate rather than rushed. The delay gives UK regulators and market infrastructure time to settle custody arrangements, settlement rules and investor protections before tokens hit the night venue. Kraken, for its part, brings both the technical plumbing and a US track record — its xStocks product already offers tokenized equities to international users outside the United States.
Market Implications: What It Means for Your Portfolio
If you hold UK equities through a traditional broker, nothing changes immediately. The significance is directional: the gap between crypto markets and stock markets is closing. When a major bourse like the LSE puts tokenized shares on a 24/5 venue, it legitimizes the format for institutional money that has so far stayed on the sidelines. That could mean deeper liquidity, tighter spreads and eventually fractional access to expensive shares for small investors.
There is also a competitive angle for crypto investors. Every tokenized stock that launches on a regulated exchange is a use case for blockchain infrastructure — the same technology powering Ethereum and similar networks where most tokenized equities live. Growing adoption of real-world assets on-chain has historically correlated with increased demand for the underlying settlement networks.
The Verdict
The London Stock Exchange pairing with Kraken’s parent is one of the clearest signs yet that tokenized stocks are moving from crypto experiment to mainstream infrastructure. The 2027 start date means patience is required, but the direction of travel — toward 24/5, fractional, blockchain-settled equities at the heart of traditional finance — now looks close to irreversible. Watch for which UK equity products get tokenized first and whether other European exchanges follow London’s lead.
The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.
LSE doing tokenized stocks with Kraken of all partners. wild timeline. 2027 feels far but these things slip anyway
greenberg confirming it to FT and everyone acting like settlement is solved. blockchain receipt for a share still needs a custodian holding the actual share, thats the hard part
exactly, the token is a receipt until settlement law catches up. UK is at least drafting that part instead of announcing first and lawyering later
A 24/5 night venue just so traders can buy Shell at 3am. The FTSE gap up crowd is gonna love not waiting for the open
half the FTSE gap ups are just overnight US moves getting priced in at the open anyway. moving that to 24/5 means uk traders stop getting front run by new york while they sleep, thats the real pitch
2027 launch so we get another full year of tokenized stock announcements before anyone trades anything. 24/5 on UK equities is genuinely needed tho
and somehow still no answer on weekend custody transfers. trading 24/5 means nothing if the back office runs 9 to 5 GMT
Payward being the partner is the detail here. A regulated bourse picking the Kraken parent as its crypto rail is the exact bridge tradfi keeps saying it wants.
The night venue announcement in July already had gap-up problems baked in. Tokenized Shell at 3am is fun until the token drifts from the LSE close and nobody is arbitraging it at 4am.