London Stock Exchange to Launch Tokenized Stocks with Payward

The London Stock Exchange is partnering with financial infrastructure platform Payward to launch tokenized stocks backed by companies listed in London. Scheduled for release next year pending regulatory approval, these tokens will operate on the exchange's overnight trading platform. Each token is backed by a single share and can be traded via digital wallets and exchanges at any time.

This initiative follows a July announcement regarding a 24-hour trading venue for exchange-traded products. The move aims to increase liquidity, attract more investors, and entice private companies to go public, as the bourse has recently struggled with a trend of companies taking their listings private.

The London Stock Exchange Group Plc previously introduced a digital settlement service for foreign exchange and digital asset trades earlier this year to modernize its financial infrastructure.