<\/p>\n
Brazil\u2019s securities regulator has established a working group to explore tokenized securities.<\/p>\n
This working group, the\u00a0Comiss\u00e3o de Valores Mobili\u00e1rios<\/a>\u00a0(CVM)\u00a0announced<\/a>\u00a0Friday (July 17), will draft an experimental framework that examines the registration, custody, trading and settlement of tokenized securities using blockchain technology.<\/p>\n \u201cTokenization represents a structural transformation of the capital market and demands an equally innovative regulatory approach,\u201d said Otto Lobo, the CVM\u2019s president.<\/p>\n \u201cWith this Working Group, the CVM brings together technical expertise to assess opportunities, address challenges, and build, in a coordinated manner, the foundations for a modern, secure regulatory environment aligned with the evolution of the Brazilian capital market.\u201d<\/p>\n The CVM wants the group to submit its first proposal within 60 days of being formally established. The group comprises 14 CVM departments, though it may seek the input of government agencies, market associations, self-regulatory groups and outside experts.<\/p>\n \u201cThe group will also be responsible for evaluating aspects related to\u00a0cybersecurity<\/a>, identifying any needs for improvement in the current regulatory framework, conducting or coordinating the evaluation of prototypes in experimental environments, and establishing the basis for future regulation of securities tokenization,\u201d the CVM said.<\/p>\n The announcement was flagged Monday (July 20) in a\u00a0report<\/a>\u00a0from CoinDesk, which notes the growth in Brazil\u2019s tokenized assets space. The report cites data from Brazilian tracking platform RWA Monitor showing the country\u2019s real-world asset market is now at around 12 billion reais, or around $2.34 billion.<\/p>\n According to the report, the CVM has also tested blockchain-based issuance and secondary trading with its regulatory sandbox. The working group will examine those experiments as it weighs a larger framework for securities issued, held and traded using distributed ledgers.<\/p>\n In other tokenization news, PYMNTS explored the potential of tokenized deposits in a recent episode of the\u00a0\u201cFrom the Block\u201d podcast<\/a>, featuring PYMNTS CEO Karen Webster,\u00a0Ctrl Alt<\/a>\u00a0Founder and CEO\u00a0Matt Ong<\/a>, and\u00a0Ryan Rugg<\/a>, global head of digital assets for Treasury and Trade Solutions (TTS) at\u00a0Citi<\/a>.<\/p>\n