United Kingdom To Bring Stocks Onchain

The London Stock Exchange ($LSEG) is partnering with cryptocurrency exchange Kraken to place shares of the United Kingdom's largest publicly traded companies on blockchain rails.

In coming weeks, the 100 largest London-listed companies will be made available on Kraken's xStocks tokenized equities framework.

A tokenized stock is a digital token on a blockchain that represents a share or exposure to a traditional company stock.

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The tokenized stocks will be one-to-one-backed versions of the underlying shares and can be traded around the clock using self-custody wallets.

London is one of several stock exchanges that's looking to tokenize equities, bonds and commodities and place them on a blockchain where they can be traded 24-hours a day, seven days a week.

Advocates say digital representations of stocks offer greater liquidity and flexibility than traditional equities.

The xStocks tokenization platform is proving to be extremely popular with investors, having generated more than $40 billion U.S. in total trading volume.

The London Stock Exchange's tokenized equity plan still requires regulatory approval, something the exchange anticipates shortly, after which it will move forward with its plan.

Investors are also looking at ways to use tokenized assets as potential collateral, something that is still being debated.

LSEG stock has declined 4% over the past year in London trading.