London Stock Exchange and Kraken to launch tokenized stock trading

The London Stock Exchange (LSE) and cryptocurrency exchange Kraken are reportedly launching tokenized stock trading on the stock market operator’s new night-time trading venue.

The LSE has partnered with Kraken’s parent company, Payward, to launch access to tokenized stocks tracking the value of leading UK equity products starting in 2027, Payward’s chief commercial officer, Mark Greenberg, told the Financial Times according to a Tuesday report.

The tokenized stocks will be listed on LSE’s new night-time trading venue, LSE 24, that will offer 24/5 trading, operating from Mondays to Fridays, the company announced on July 21.

The initiative makes the London bourse the latest traditional exchange operator to explore blockchain-based stock offerings that can be traded 24 hours a day with fractional ownership. Other traditional finance (TradFi) institutions exploring tokenized equity products include the Nasdaq, CME Group and the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE).

In 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 tokenized markets with round-the-clock trading.

Some of the world’s largest TradFi institutions have been exploring tokenized stock offerings.

In March, Nasdaq, the world’s second-largest stock exchange by market capitalization, partnered with Payward and its Backed subsidiary, the issuer behind xStocks, to develop an equities transformation gateway. The plan builds on Nasdaq’s tokenization proposal filed with US securities regulators in September 2025.

A week earlier, ICE invested in crypto exchange OKX to bring NYSE-listed tokenized stocks to the exchange starting from the second quarter of 2026.

In April, Deutsche Börse invested $200 million in Payward, as part of the German exchange operator’s plans to offer access to a wider array of blockchain-based securities and tokenized investment products and build on its prior partnership with Kraken.

In January, CME Group, the largest derivatives exchange by volume, announced plans to launch crypto futures contracts tied to Cardano (ADA), Chainlink LINK and Stellar (XLM). Three months later, CME announced plans to add Avalanche AVAX and Sui SUI futures contracts starting May 4, subject to regulatory approval.

The value of tokenized stocks increased by 15% in the past 30 days to $2.53 billion, while the number of tokenized equity holders grew by 153% to 2.45 million, according to data provider RWA.xyz.