Overview
- The Comissão de Valores Mobiliários installed the Securities Tokenization Working Group on Monday and gave it 60 days to deliver an experimental proposal and 120 days for a broader review with a possible 30-day extension.
- The GTT pulls together 14 CVM departments and will consult government agencies, market groups, self-regulators and outside experts as it prepares recommendations for the CVM board.
- The review will focus on concrete operational and legal questions such as who keeps the official ownership record, how private keys are held, when transactions may be reversed and who is liable for system failures.
- The CVM will draw on prior sandbox tests of blockchain issuance and secondary trading and will assess cybersecurity risks and foreign regulatory models as it builds rules for registration, custody, trading and settlement on distributed ledgers.
- Brazil’s token market is growing — tracked at about 12 billion reais — and the work could change how investors store and trade securities, affect custody practices, and shape links between tokenized assets and the central bank’s Drex platform.