Argentina Securities Commission (CNV) has opened a public consultation on a proposed tokenization regime that would bring digital representation of publicly offered negotiable securities into its rulebook. The framework would allow securities to be represented digitally using distributed ledger technology (DLT) or similar technologies, with functional equivalence to traditional paper or book-entry forms, as an additional representation method. The proposal would permit total or partial digital representation of shares (including dual-listed shares), corporate bonds, units in closed-end mutual funds, debt securities and participation certificates of publicly offered financial trusts, and CEDEARs. Trading would take place on the platforms and/or mobile apps of CNV-registered virtual asset service providers (PSAVs), based on an issuer-prepared issuance document following a request for digital representation that may be carried out in one or more tranches. The underlying securities would still need to be issued in paper or book-entry form and deposited through an authorised depositor with a central securities depository agent (ADCVN), remaining immobilised and recorded in the name of a registered holder; the proposal also clarifies that this is an additional representation of an existing security rather than a separate token or “underlying”. The tokenization process could be performed by a specialised DLT entity whether or not it is registered as a PSAV, while registered PSAVs involved would be responsible for distribution and for administering, safeguarding and managing the digital environment, and holders could request conversion back to traditional formats at any time. Implementation would run in a controlled regulatory sandbox for one year, with issuances completed during that period remaining valid afterwards, no new issuances permitted once the period ends, and authorised issuances that are not digitised within two years losing their status under the regime.

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