Tokenized FTSE 100 Stocks Go Live Soon, UK Residents Locked Out

Within weeks, Payward is set to introduce tokenized versions of London's 100 biggest publicly traded firms. Investors across over 110 nations are eligible, though those in the UK are excluded.

The company behind Kraken is collaborating with the London Stock Exchange on this initiative. The product being launched is a tokenized wrapper, not an actual share, and the exchange's own timeline remains years away.

Tokenized London Stocks Debut Without Shareholder Rights

Every xStock token follows the price of a single underlying share. The legal entity issuing these tokens is Backed Assets (JE) Limited, based in Jersey. Payward reached an agreement to purchase the firm behind it last December.

Token holders gain exposure to price movements, the ability to transfer tokens around the clock, and can use them within wallets or on-chain applications. However, they are not recorded on the share register.

The traditional holder retains voting rights and the ability to receive the actual stock. The details of tokenized stock offerings seldom make this clear.

Another limitation is the scale involved. The 100 companies constitute the FTSE 100 index, which LSEG's subsidiary FTSE Russell pegs at $3.47 trillion as of end-July. Only a tiny sliver of that will be represented on-chain.

According to RWA.xyz data, all tokenized stocks across all blockchains were valued at approximately $2.5 billion on Tuesday. xStocks accounts for about $607 million of that total, trailing competitor Ondo Finance.

Payward reports $40 billion in cumulative trading volume for xStocks. This figure reflects trading turnover, not the amount of tokens actually held on-chain.

Full London Stock Exchange Integration Remains Years Off

In July, LSEG unveiled LSE 24, a venue operating 24 hours a day, five days a week, rather than continuously. Testing is slated to begin in late 2026. Exchange-traded products are expected to list in the first half of 2027, pending regulatory approval.

Equities will follow later. No confirmed date exists for tokenized London stocks to trade on the exchange itself.

“Tokenization has the potential to change how investors access, and how issuers use, financial markets, but it must develop in a way that preserves the trust, rights and role of regulated markets,” read an excerpt in the announcement, attributed to Julia Hoggett, chief executive of LSE plc, said.

The two companies will also explore tokens issued directly by the LSE that come with full shareholder rights. Payward signed a similar agreement with Nasdaq in March, and that project also aims for a 2027 launch.

Thus, the pattern is established. Blue-chip stocks appear on-chain as Jersey-based tokens initially, while the actual shares are held back, available for purchase everywhere except London.