The Brazil Securities Commission (CVM) has established an experimental program for securities operations using distributed ledger technology (DLT), putting into effect the framework developed by its Tokenization Working Group after engagement with market participants. The pilot covers issuance, offering, distribution, trading, recordkeeping, custody, centralized deposit and settlement, and may involve shares, debentures, receivables certificates, investment fund units and other collective investment securities or contracts. The resolution took effect upon publication. The program will assess the technical, operational and legal viability of DLT, test interoperability and connectivity between participants, and identify risks, vulnerabilities and regulatory gaps. A CVM management committee will oversee the tests, and the final assessment submitted to the commission’s board will set out results, identified risks and recommendations for possible regulatory or legislative changes. The working group’s infrastructure and cybersecurity, governance and institutional coordination, and market supervision workstreams remain underway.
Brazil Securities Commission launches DLT pilot spanning the securities lifecycle
The Brazil Securities Commission has launched a pilot for securities issuance, trading and post-trade operations on distributed ledger technology networks. The tests will assess viability and interoperability while identifying risks and regulatory gaps. Findings will inform possible regulatory or legislative changes.