LSEG is planning a 24/5 trading model tied to tokenized securities, a digital securities depository, and new infrastructure links with Kraken and HSBC. The pitch is bigger than a tokenized-stock gimmick: it is an attempt to connect trading, listing, settlement, and custody into one system.
- LSEG24 is targeted for the first half of 2027
- Digital securities depository and tokenized equity products are in the works
- Kraken and HSBC are part of the planned setup
- The hardest problem is still settlement and funding, not trading hours
Speaking at the European Blockchain Convention, LSEG representative Darko Hajdukovic laid out the exchange group’s plans for a broader digital-market stack. In his words, the group is moving toward a 24/5 trading cycle, tokenized equity products, a digital securities depository, a listing partnership with Kraken, and an interoperable link with HSBC.
“In the first half of next year we move to a 24/5 trading cycle, LSEG24. We’re building a digital securities depository, partnering with Kraken to list on it, and building tokenised equity tokens. We’ve also signed an MOU with HSBC on an interoperable link.”
That “next year” remark was made in the context of the conference timing, which places the planned launch in the first half of 2027. No exact date was given, and LSEG did not spell out which securities would be first, which blockchain would be used, or how the products would be structured legally.
And that last part matters more than the glossy language suggests.
A 24/5 trading cycle means markets would run 24 hours a day, five days a week, instead of only during regular exchange hours. For global investors, that sounds obvious and overdue. For market infrastructure, it creates a less glamorous problem: what happens when trading is always on, but the cash side still depends on banking rails that shut down overnight and on weekends?
That is the real bottleneck. You can keep a token moving all weekend, but if dollars cannot move with it, the market becomes a patchwork of promises, workarounds, and liquidity stress. Continuous trading is easy to market. Continuous funding and settlement are where the wheels come off.
LSEG is already laying some of that groundwork. Earlier in 2026, it launched its Digital Settlement House, which LSEG says allows 24/7 transfers and uses synchronized settlement, meaning the related pieces of a transaction complete in coordination to reduce failure risk. That is not the same as rebuilding the entire payments system, but it is a serious attempt to reduce the friction that normally sits between trade execution and final settlement.
The depository piece is just as important. A digital securities depository is the recordkeeping layer for holding and settling securities in digital form. In plain English, it is the authoritative system that tracks who owns what and how ownership changes hands. Without that layer working properly, “tokenized” can end up meaning little more than a slick wrapper around old infrastructure.
That is the core issue with tokenized equities: the label does not tell you what rights the holder actually gets. Some products are tied to real securities. Others provide beneficial interest, or economic exposure without direct legal ownership. Some are basically synthetic price-tracking instruments. The token may look modern, but the legal rights still live in the plumbing underneath.
Kraken’s role suggests LSEG is not treating this as a side show for crypto traders. Kraken has already been active in token-linked market products. In September, it introduced CFTC-regulated U.S. perpetual futures linked to the SPDR S&P 500 ETF Trust, the Invesco QQQ Trust, and Nvidia. Kraken charges a 25% performance fee, deducted before estimated APY is displayed. That is a good reminder that “yield” in crypto often arrives with fees attached and a marketing team standing nearby.
Coinbase has also pushed into this area. In August, it introduced Base-native tokens linked to Apple, Nvidia, Meta, and Alphabet for eligible non-U.S. customers. Coinbase CEO Brian Armstrong has said tokenized stocks should hold real securities, which gets to the heart of the issue: if a product is marketed like a share but does not carry the same rights, investors deserve to know exactly what they are buying.
Citi’s view shows this is not just a crypto-exchange experiment. Nadine Teychenne of Citi said blockchain offers the “real-time, always-on” nature of a shared record, along with the “programmability of assets” that is already appearing in tokenized money market funds. Citi has been working on blockchain systems since 2015, so this is not a bank chasing a fad. It is a long-term infrastructure bet.
“What’s most interesting is the real-time, always-on nature of the blockchain single source of truth, but also the programmability of assets, which we’re starting to see with tokenised money market funds, ”
The phrase single source of truth is doing a lot of work there. In market infrastructure, it means a shared authoritative record that all participants can rely on. That is the promise blockchain proponents keep coming back to: fewer reconciliation headaches, faster settlement, and less ambiguity over what happened when.
The skeptic’s reply is just as blunt: a shared ledger is useful only if the rights, custody, and settlement mechanics are sound. Otherwise, all you have done is move the mess into prettier software.
That is why the legal structure of tokenized equities matters so much. Investors need to know whether they are getting actual share ownership, a beneficial interest, or synthetic exposure. Those are not interchangeable. Ownership can affect voting rights, dividends, transfer rules, and legal claims in a way that a token label alone does not fix.
The HSBC memorandum of understanding also deserves a careful reading. An MOU, or memorandum of understanding, is an agreement to cooperate, not necessarily a final binding contract. In practice, an “interoperable link” could mean systems that can communicate across institutions, align settlement processes, or move assets between different market venues. It sounds dry, but that kind of plumbing is what makes or breaks whether tokenized markets can work outside a demo environment.
This is why the obsession with trading hours alone misses the point. Longer sessions and 24/5 markets are useful, but they do not solve ownership, custody, or cash movement by themselves. If the trading layer moves faster than the settlement layer, the result is a market that looks modern while still depending on old bottlenecks. Finance loves that sort of half-modern arrangement right up until something breaks on a Sunday night.
There is also a broader industry shift underway. Exchanges, banks, and crypto firms are all pushing toward systems that blur the line between traditional market infrastructure and blockchain-based rails. U.S. markets are also weighing longer equity-trading hours and tokenized securities rules, though the specific rulemaking path was not detailed here. The direction of travel is clear even if the final destination is not.
The bullish case is straightforward. If LSEG can connect trading, settlement, and tokenized securities in a coherent way, it could make markets more continuous, more programmable, and less dependent on legacy bottlenecks. For global capital markets, that is not a minor tweak. It is the kind of infrastructure change that can shave friction off everything from investor access to post-trade processing.
The skeptical case is just as real. Institutions love to talk about transformation while quietly leaning on the same old rails under the hood. If money cannot move when tokens can, or if token holders do not have clear legal rights, then the whole thing risks becoming expensive theater with a blockchain logo on the door.
Bitcoin maximalists will look at this and see legacy finance trying to graft blockchain onto itself because it can no longer ignore digital bearer-style transfer. That instinct is not wrong. But tokenized equities are not Bitcoin, and they should not be judged as if they were. They serve a different purpose, with different trade-offs, and in many cases a messier legal reality.
The next phase will be decided by execution, not slogans. Can LSEG make continuous trading work without creating weekend funding headaches? Can its depository model handle ownership cleanly? Will Kraken-linked products and HSBC connectivity actually reduce friction in practice? And, most importantly, will investors know exactly what rights sit behind the token?
Kraken has also expanded deeper into U.S. derivatives, which makes its role in LSEG’s setup look less like a one-off partnership and more like part of a broader push into regulated market infrastructure.
Nakamoto’s debt refinance is another reminder that in crypto, the boring part is often the important part: funding, balance sheets, and treasury management usually matter more than the flashy branding.
Key takeaways
What is LSEG building?
LSEG is planning a 24/5 trading cycle, a digital securities depository, tokenized equity products, and infrastructure links with Kraken and HSBC.
When is LSEG24 expected to start?
LSEG expects the 24/5 trading cycle to begin in the first half of 2027.
Why does this matter?
It shows LSEG is trying to connect trading, settlement, and tokenized market infrastructure instead of treating tokenization as a standalone gimmick.
What is the biggest problem with always-on markets?
Cash settlement and funding still depend on traditional banking rails, which can go offline on nights and weekends.
Do tokenized equities always give the same rights as shares?
No. Depending on the structure, they can represent real securities, beneficial interests, or synthetic exposure, and those come with very different legal rights.
What does the HSBC MOU mean?
It signals cooperation on an interoperable link, but an MOU is not the same as a final binding implementation agreement.
Why are Kraken and Coinbase relevant here?
Both have already launched token-linked products, showing that crypto-native firms are pushing deeper into market infrastructure and not just trading speculation.
What is the main lesson from all this?
Blockchain can improve market plumbing, but only if the legal structure, custody, and settlement rails are built properly. Otherwise, it is just a faster way to shuffle ambiguity around.
Further reading
A quick primer on the legal wrapper behind tokenized securities.
