Kraken Parent Payward to Tokenize 100 London Stocks as xStocks

How x Stocks Will Work on Kraken Platforms

Payward, the parent company of cryptocurrency exchange Kraken, announced plans to tokenize the 100 largest companies listed on the London Stock Exchange. The initiative, named x Stocks, will create digital tokens representing each share on a one-to-one basis. The first tokens are expected to launch in the coming weeks on Kraken and other platforms within the x Stocks Alliance. Trading support will come from LSE 24, the London Stock Exchange’s extended-hours trading service. The project aims to bridge traditional equities with blockchain technology, offering investors new ways to access UK blue-chip stocks. Regulatory compliance and custody arrangements are being finalized ahead of the rollout.

Each x Stock token will be fully backed by the actual underlying share held in custody, ensuring a 1:1 value relationship. Users will be able to buy, sell, and hold these tokens just like other digital assets on Kraken. The tokens will settle instantly on blockchain networks, reducing the delays common in traditional stock trading. Payward emphasized that the tokens will not confer voting rights or dividends directly, though economic benefits will mirror those of the physical shares. The x Stocks Alliance includes other crypto platforms committed to supporting the tokenized securities. Initial availability will focus on major UK firms across sectors like finance, energy, and consumer goods.

What Benefits Do Tokenized Stocks Offer Investors?

Tokenization allows for fractional ownership, enabling investors to purchase portions of high-priced shares with smaller amounts of capital. It also opens access to London-listed stocks for global users who may face barriers through traditional brokerages. Trading via LSE 24 means x Stocks can be traded beyond regular market hours, increasing flexibility. Payward sees this as a step toward 24/7 market access for traditional assets. The move aligns with growing interest in real-world asset tokenization across the crypto industry. By leveraging blockchain infrastructure, the company aims to improve transparency and reduce settlement risks.

Will x Stock holders receive dividends from the underlying shares? While the tokens do not automatically pass through dividends, Payward intends to distribute equivalent economic benefits to token holders, subject to operational and legal frameworks.

Frequently Asked Questions

Can x Stocks be transferred outside of Kraken or Alliance platforms? Yes, x Stocks are designed to be interoperable on compatible blockchain networks, allowing transfers to external wallets that support the token standard, though trading liquidity may vary.

Is this product available to users in all countries? Availability will depend on local regulations; Payward will comply with jurisdictional requirements and may restrict access in certain regions until proper approvals are secured.