Lightning Stock Exchange (Lise), a new stock exchange in France, is making waves with its aim to establish a completely tokenized equity exchange specifically for small and medium-sized enterprises (SMEs).

The Prudential Supervision and Resolution Authority (ACPR) of France has granted Lise a DLT trading and settlement (TSS) license, clearing the path for the tokenized exchange to launch in Europe, as the company announced this Thursday.

“This approval grants us the right to run the first tokenized stock exchange aimed at equities in Europe,” stated Mark Kepeneghian, managing director of Lise, in a LinkedIn post.

Supported by key French banks such as BNP Paribas and Bpifrance, Lise is a subsidiary of Kriptown, which brands itself as a ’neo-exchange for startups and SMEs’ focusing on digital assets.

Understanding the DLT TSS License

The DLT TSS license functions under the European Union’s DLT Pilot Regime, which outlines regulations for market infrastructures that utilize distributed ledger technology (DLT).

This regime took effect in March 2023, establishing a legal framework for the trading and settlement of transactions involving crypto assets categorized as financial instruments per the Markets in Financial Instruments Directive (MiFID II).

Market infrastructures within the EU’s DLT Pilot Regime. Source: The European Securities and Markets Authority

The DLT TSS license enables Lise to construct a next-generation market infrastructure, merging both market and post-trade functionalities within a single system, as stated by the company. They highlighted a blend of multilateral trading facilities (MTFs) and central securities depositories (CSDs), noting this represents a “profound shift in the operation of financial markets.”

Rethinking IPOs through Tokenization

Lise’s announcement regarding the DLT TSS license occurred just months after it reemerged from stealth mode in April 2025, with the intent to completely rethink the initial public offering (IPO) concept.

“Lise is architecting a distinct market infrastructure driven by asset tokenization,” the company asserted, stressing this strategy guarantees a high level of security while significantly lowering the costs associated with IPOs and public listings.

Kepeneghian indicated to Cointelegraph that the first tokenized IPOs are anticipated to commence in early 2026, post the completion of issuer onboarding and final operational readiness tests. He forecasted that Lise would conduct its first tokenized IPO as a proof-of-concept in the first quarter of 2026, with aspirations to tokenize ten additional IPOs in 2027.

Crédit Agricole Among the Investors

Several notable banks in Europe have shown interest in Lise’s tokenization initiatives related to IPOs. Caceis, the asset servicing banking division of France’s Crédit Agricole, acquired a minority stake in Kriptown in August to assist with Lise’s initiation.

“This investment demonstrates Caceis’ commitment to fostering transformation in the financial industry and cultivating digital ecosystems that foster innovation,” the firm stated, adding:

“The investment aligns with Caceis’ long-term digital asset strategy, which it has been advancing for several years to facilitate market infrastructure transformation.”

Lise’s tokenization endeavors in Europe represent a significant step in the rising trend of tokenized securities, with major crypto exchanges like Gemini and Kraken launching tokenized securities offerings for EU customers earlier this year.