Brazil’s CVM advances 120-day plan for tokenized securities
Brazil’s Securities and Exchange Commission (CVM) is advancing a 120-day working group focused on tokenization in capital markets. The group will study distributed ledger technology and propose regulatory measures covering the registration, custody, trading, and settlement of securities on blockchain-based networks.
The initiative began in July and includes representatives from 14 CVM organizational units, with input from market associations, self-regulators, and specialists. The group must deliver a regulatory proposal for an experimental tokenization regime within 60 days, followed by a final report at the end of its mandate.
Meanwhile, the CVM has already received a proposal for a DLT pilot. The planned tests could c over shares, debentures, receivables certificates, fund units, and other investment contracts. Testing would assess technical, operational, and legal feasibility while identifying cybersecurity risks and regulatory gaps.
Why it matters
The initiative could shape Brazil's regulatory framework for tokenized securities and blockchain-based market infrastructure. Investors and financial firms will watch the pilot for evidence on how tokenization could enter regulated capital markets.
