France’s Lise Wins DLT Greenlight, Targeting 2026 Stock Exchange IPOs On-chain

Core Insights - France has approved the Lightning Stock Exchange (Lise), marking a significant shift in public markets and IPOs towards a fully tokenized equity exchange [1] - Lise has obtained a DLT TSS license under the EU's DLT Pilot Regime, allowing blockchain-based financial infrastructures to operate within traditional legal frameworks [1][2] - The exchange aims to facilitate access to public markets for small and mid-cap firms, which have historically faced challenges in going public [4] Regulatory and Institutional Support - The approval of Lise was achieved in collaboration with key institutions including the Banque de France, ESMA, AMF, and the European Central Bank [2] - Lise is backed by major financial institutions such as BNP Paribas, Bpifrance, and CACEIS, positioning it as a significant player in the French fintech landscape [4] Technological Advancements - The integration of trading and post-trading operations on a single distributed ledger allows for instant transactions, reducing settlement delays and counterparty risk [3] - Lise's model could enable 24/7 trading, a first for European capital markets [3] Market Impact and Future Prospects - Analysts suggest that Lise's approval could position France as a leader in tokenized securities within Europe, paving the way for on-chain IPOs and equity trading [5] - The exchange plans to host its first IPOs in early 2026, introducing a new model of digital public offerings that combines traditional finance with blockchain efficiency [5] Broader Trends in Tokenization - The global trend of tokenization is gaining momentum, with real-world asset (RWA) tokenization surpassing $33.9 billion, reflecting a 10% increase in the past month [6] - Private credit leads the tokenization sector with $17.5 billion, followed by U.S. Treasury debt at $8.3 billion and commodities at $2.8 billion [6] - Ethereum dominates the RWA market with $12.1 billion in tokenized assets, accounting for approximately 57.5% of the market [6]