France’s Lightning Stock Exchange (Lise) is preparing to host Europe’s first fully on-chain stock market debut, a move that will bring tokenization into the initial public offering (IPO) process.
The Paris-based exchange, which received approval last year under the EU’s distributed ledger technology (DLT) pilot regime, plans to list French aerospace supplier ST Group on April 9, according to a press release on Thursday.
ST Group produces composite components for aircraft, defense systems and space projects. The company said the project has potential revenue of about 59 million euros ($68 million) over the next decade, with plans to expand production as demand grows in the aerospace and military supply chain.
Tokenization is gaining traction among large financial companies that use blockchain rails to settle transactions and track ownership of assets such as bonds, funds and stocks. Proponents say tokenization can improve capital markets through cheaper, faster settlements and more efficient operations. Wall Street giants such as Nasdaq and the New York Stock Exchange have also laid out plans to trade tokenized securities on their platforms.
Lise takes this concept one step further by moving the IPO process itself onto the chain. The exchange focuses on small and medium-sized businesses that face high costs and long times when raising funds through traditional markets. It is backed by French banks including BNP Paribas, CACEIS (a subsidiary of Credit Agricole) and Bpifrance.
ST Group’s debut, if successful, could provide a blueprint for smaller companies to enter public markets cheaper and faster within European rules.
Read more: Digital Asset Firms Warn EU Risks Falling Behind U.S. on Tokenization Rules
