London Stock Exchange Collaborates with Kraken for Tokenized Stock Trading

The London Stock Exchange (LSE) is set to launch tokenized stock trading in collaboration with Kraken's parent company, Payward. This new initiative will be available on the LSE's night-time trading venue, known as LSE 24, which will operate 24 hours a day from Monday to Friday. According to Mark Greenberg, Payward's chief commercial officer, the tokenized stocks will track the value of leading UK equity products and are expected to be available starting in 2027.

This move positions the LSE among other traditional finance institutions, such as Nasdaq and CME Group, that are exploring blockchain technology for stock trading. The LSE's initiative aims to enhance trading flexibility by allowing fractional ownership and around-the-clock trading capabilities.

In recent months, major players in the financial sector have shown increasing interest in tokenized equities. For instance, Nasdaq has been actively pursuing tokenized markets, including its acquisition of LeveL Markets, which is the third-largest alternative trading system in the U.S. by trading volume. This acquisition is part of Nasdaq's broader strategy to facilitate continuous trading in tokenized assets.

Additionally, the Intercontinental Exchange (ICE), which owns the New York Stock Exchange, has also made strides in this area by investing in crypto exchange OKX to introduce tokenized stocks on its platform by mid-2026. Similarly, Deutsche Börse has invested significantly in Payward to expand its offerings of blockchain-based securities.

The value of tokenized stocks has seen a notable increase, rising by 15% over the past month to reach $2.53 billion. The number of holders of these tokenized equities has surged by 153%, now totaling approximately 2.45 million, according to data from RWA.xyz. This growth underscores the rising demand for innovative trading solutions in the evolving financial landscape.