The London Stock Exchange (LSE) is partnering with Kraken‘s parent company, Payward, to launch tokenized stock trading. This initiative aims to provide access to tokenized equities that reflect the value of leading UK stocks, with a targeted launch in 2027.
New Trading Venue for Tokenized Stocks
According to a report by the Financial Times, the tokenized stocks will be available on LSE’s new night-time trading platform, LSE 24, which will operate 24 hours a day, five days a week. This move positions the LSE as a key player in the growing market for blockchain-based stock offerings, allowing for fractional ownership and extended trading hours.
Broader Trend in Traditional Finance
The collaboration reflects a broader trend among traditional finance (TradFi) institutions exploring tokenization. Other major players, such as Nasdaq, CME Group, and the Intercontinental Exchange (ICE), are also venturing into tokenized equity products. For instance, Nasdaq has recently acquired LeveL Markets to enhance its capabilities in tokenized markets.
Investment and Partnerships in Tokenization
Recent investments highlight the growing interest in tokenization within the financial sector. In March, Nasdaq partnered with Payward and its subsidiary, Backed, to create an equities transformation gateway. Meanwhile, ICE’s investment in OKX aims to introduce NYSE-listed tokenized stocks. Additionally, Deutsche Börse invested $200 million in Payward to expand its blockchain-based securities offerings.
Market Growth in Tokenized Stocks
The market for tokenized stocks has seen significant growth, with the total value increasing by 15% over the past month to reach $2.53 billion. The number of tokenized equity holders has surged by 153%, totaling 2.45 million, according to data from RWA.xyz.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
