Brazil’s securities regulator has established a dedicated task force to accelerate the development of a regulatory framework for tokenized securities, marking another step in the country’s broader push to modernize its capital markets through blockchain technology.
The Comissão de Valores Mobiliários (CVM) announced the creation of its Tokenization Working Group, which will study, test, and recommend rules governing the issuance and lifecycle of tokenized securities on distributed ledger technology (DLT) infrastructure. As its first major deliverable, the group must submit a proposal for an experimental regulatory regime within 60 days.
Broad Scope for Digital Securities
The newly formed working group brings together representatives from 14 departments within the CVM and may also include government agencies, self-regulatory organizations, market associations, and invited industry specialists.
Its responsibilities include:
- Studying domestic and international tokenization initiatives.
- Evaluating results from regulatory sandbox projects.
- Assessing cybersecurity and operational risks.
- Recommending updates to Brazil’s securities regulations.
- Coordinating prototype testing in experimental environments.
The group will focus on how distributed ledger technology can support the registration, custody, trading, settlement, and safekeeping of securities while maintaining investor protection and market integrity.
The task force has an initial mandate of 120 days, with the possibility of a 30-day extension. At the end of its work, it will present a comprehensive report containing technical recommendations and proposed regulatory measures.
Brazil Advances Digital Asset Regulation
The initiative reflects Brazil’s continued efforts to build a regulatory framework for digital assets and blockchain-based financial infrastructure. The CVM said tokenization represents one of the most significant structural shifts underway in capital markets and requires regulatory approaches that evolve alongside technological innovation.
The regulator emphasized that any future framework must encourage innovation while preserving legal certainty, cybersecurity, and investor safeguards. The experimental regime proposed within the next two months is expected to provide a controlled environment for testing tokenized securities before broader regulatory implementation.
The move also complements Brazil’s wider digital asset agenda, as financial authorities continue developing rules for virtual asset service providers and prudential standards for digital asset exposures. Together, these efforts position Brazil among the jurisdictions actively exploring regulated tokenization as a component of its future capital market infrastructure.
