The London Stock Exchange is teaming up with the parent company of crypto exchange Kraken to offer tokenized UK stocks. The partnership is designed to give investors 24/5 access to UK-based equities in token form, a move that underscores how traditional finance is warming to digital assets.
The partnership
The exchange and Kraken's parent company are working together to bring tokenized versions of UK stocks to market. Tokenized equities are digital representations of traditional shares, recorded on a blockchain. The goal is to let investors trade these tokens around the clock, five days a week, rather than being limited to standard exchange hours.
Neither side has disclosed the technical details of the platform or which stocks will be tokenized first. The companies have not said when the service will go live.
Why tokenized equities are gaining ground
The move is part of a broader trend of established financial institutions exploring tokenized assets. Banks, exchanges, and asset managers have been testing ways to put everything from bonds to real estate on blockchain rails. Tokenized stocks are a natural next step, since they combine the liquidity of traditional markets with the flexibility of digital assets.
For the London Stock Exchange, the partnership is a way to stay relevant as crypto-native platforms push into mainstream finance. For Kraken's parent, it's a chance to tap into the credibility and reach of a major exchange.
What 24/5 trading means
Most stock exchanges operate during set hours, typically 9:30 a.m. to 4 p.m. local time. Tokenized equities can trade whenever the market is open, which in this case means five days a week, 24 hours a day. That's a significant shift for investors who want to react to news or events outside regular trading windows.
The partnership doesn't mean the London Stock Exchange itself will run a 24/5 market. Instead, the tokenized stocks will be offered through the platform built by Kraken's parent, with the exchange providing the underlying equities.
The broader push into tokenization is still in its early days. Regulators in several countries are watching closely, and the success of this partnership could influence how other exchanges approach digital assets. For now, the London Stock Exchange and Kraken's parent are moving ahead, with no launch date announced.
