The Brazil Securities Commission presented an update on its Tokenization Working Group and discussed the emerging regulatory framework for tokenized securities with regulators, capital markets firms and digital asset specialists. The work builds on the group’s proposed distributed ledger technology pilot, which would test the securities lifecycle from issuance and distribution through custody, trading and settlement to inform future regulation. The working group is addressing regulatory requirements, market infrastructure and cybersecurity, artificial intelligence solutions, governance and institutional coordination. Chair Otto Lobo also said the commission expects to deliver an AI-based market supervision system by the end of 2026, with support from ANCORD, ANBIMA and ABRASCA.