France’s Lise Secures License for Europe’s First Fully Tokenized Stock Exchange

Executive Summary

Paris-based Lise (Lightning Stock Exchange) has obtained a Distributed Ledger Technology (DLT) Trading and Settlement System (TSS) license from the French financial regulator ACPR (Autorité de Contrôle Prudentiel et de Résolution). This authorization positions Lise to launch Europe’s first fully tokenized stock exchange, integrating both trading and settlement functions on a single blockchain-based infrastructure. The initiative operates under the European Union's DLT Pilot Regime, an experimental framework designed to facilitate the adoption of blockchain technology in financial markets. This development is seen as a significant step towards the broader institutional adoption of DLT and the tokenization of traditional assets across Europe.

The Event in Detail

On October 13, 2025, Lise received formal approval, including sign-off on its detailed operating rules and rulebook from the Autorité des Marchés Financiers (AMF), clearing the path for its EU-sanctioned experiment. The DLT TSS license enables Lise to function as both a Multilateral Trading Facility (MTF) and a Central Securities Depository (CSD) within a unified digital environment. This structure compresses traditional trading and settlement cycles, allowing for near real-time, on-chain settlement, a marked departure from the conventional T+2 system. This approach aims to reduce counterparty and settlement risk while accelerating the final transfer of ownership.

Lise is a subsidiary of French fintech Kriptown, which previously raised a €4.2 million ($4.6 million) Series A round with investment from BNP Paribas, Bpifrance, and the Centilux Family Office. Major financial institutions, including CACEIS (a subsidiary of Crédit Agricole Group), BNP Paribas, and Bpifrance, are also shareholders in Lise. The exchange plans to target French joint-stock companies and limited partnerships with market capitalizations below €500 million, requiring at least half of its issuers to be SMEs with valuations under €200 million. Initial public offerings (IPOs) are anticipated in early 2026, focusing on European small and medium-sized enterprises (SMEs) and mid-cap firms in strategic sectors such as energy, infrastructure, and defense. Retail access to tokenized shares is also a central component, with a planned rollout in early 2026, though retail users will need to pass a blockchain knowledge test. The DLT Pilot Regime sets a total tokenized securities cap of €6 billion for admitted instruments on the platform. The platform's rulebook explicitly prohibits high-frequency algorithmic trading and direct electronic access for third parties.

Market Implications

The authorization of Lise signifies a critical advancement for the tokenization of traditional financial assets in Europe. By enabling a single entity to handle both trading and settlement on a blockchain, Lise presents a new, potentially more efficient, and faster fundraising avenue for European SMEs and mid-cap companies. The near real-time settlement capability fundamentally alters post-trade processes, offering significant reductions in operational and counterparty risks.

This development validates the practical utility of blockchain technology beyond cryptocurrencies, demonstrating its application in regulated financial markets. The DLT Pilot Regime, which commenced on July 1, 2022, and runs for an initial three years, has been instrumental in providing a regulatory sandbox for such innovations. Prior to Lise, only two projects had been approved under this regime: CSD Prague for settlement and 21X as a combined exchange and settlement venue. The explicit regulatory framework and the involvement of major financial institutions like BNP Paribas and Crédit Agricole Group signal growing institutional confidence in DLT-based market infrastructures. The success of Lise could set a precedent for other global financial markets considering similar regulatory and technological integrations.

Expert Commentary

Market observers suggest that Lise's operational model offers several advantages for issuers, including an alternative listing route, the potential for fractional ownership, and possibly lower issuance costs. However, issuers will need to adapt to continuous disclosure requirements, digital registry obligations, and the technical task of tokenizing existing share capital. For investors, the benefits include faster finality in transactions and direct control over assets via digital wallets. Concurrently, investors are advised to consider potential risks associated with custody, counterparty exposure, and smart contract vulnerabilities. The European regulatory landscape for tokenized securities remains a "patchwork," with varying national implementations and a lack of secondary market harmonization, as noted by industry analysts. However, initiatives like the DLT Pilot Regime and local regulations are gradually clarifying the regulatory paths.

Broader Context

The launch of Lise aligns with a global trend toward the tokenization of real-world assets and traditional securities. Companies such as Robinhood, Gemini, and Kraken have already introduced tokenized stocks in Europe, while Coinbase and others are pursuing similar initiatives in the United States. In a parallel development, Nasdaq submitted a proposal to the U.S. Securities and Exchange Commission (SEC) on September 8, 2025, to integrate tokenized stocks and exchange-traded products (ETPs) into its platform, with a potential launch in Q3 2026. The combined value of tokenized public stocks geared toward retail investors grew to $412 million as of September, indicating increasing market interest. Proponents of tokenized shares emphasize potential benefits such as 24/7 trading, instant settlement (T+0), reduced transaction costs, and enhanced liquidity. The establishment of Lise reinforces Europe's position at the forefront of regulatory experimentation and practical implementation in the tokenized securities market.