Brazil Securities Regulator Launches 120-Day Tokenization Working Group

Brazil’s CVM headquarters representing the regulator’s 120-day working group to develop a framework for securities tokenization.

Brazil’s securities regulator has launched a 120-day working group to study tokenization and establish the groundwork for future rules governing tokenized securities, according to Cointelegraph.

The initiative was established by Brazil’s Comissão de Valores Mobiliários (CVM), which is examining how distributed ledger technology can be incorporated into activities including the registration, custody, trading and settlement of securities. The working group was created under CVM Portaria 177, published on July 17, 2026.

CVM Sets 120-Day Mandate

The working group, known as the Grupo de Trabalho de Tokenização (GTT), has an initial mandate of 120 days, with the possibility of a 30-day extension. It brings together representatives from 14 organizational units within the CVM and can also involve government bodies, self-regulatory organizations, market associations and invited specialists.

Its responsibilities include studying tokenization initiatives in Brazil and other jurisdictions, reviewing results from regulatory sandbox programs, consulting with market participants and assessing how distributed ledger technology could affect the structure and operation of Brazil’s capital markets.

The group is also tasked with examining cybersecurity issues and identifying potential changes to Brazil’s existing regulatory framework. Its broader objective is to establish the foundations for future regulation of securities tokenization.

Experimental Regulatory Framework Planned

The CVM has already set an earlier milestone for the initiative. Within 60 days of its establishment, the working group was required to submit a proposal for an experimental regulatory regime covering tokenized securities.

That work has since progressed. On Sept. 15, the GTT submitted a draft resolution proposing the creation of the DLT CVM Pilot Program, which would allow experimental testing of the issuance, offering, distribution, trading, registration, custody, central deposit and settlement of securities using distributed ledger technology.

The proposed pilot would assess the technical, operational and legal feasibility of DLT-based securities transactions while examining interoperability between networks and identifying risks, vulnerabilities and potential regulatory gaps.

Brazil Examines Securities Tokenization

The CVM's existing framework distinguishes between different types of crypto assets. The regulator has said its authority applies to crypto assets that qualify as securities, including digital representations of traditional securities, tokenized receivables certificates and certain publicly offered investment contracts. Bitcoin and most cryptocurrencies that are not classified as securities generally fall outside the CVM's securities-market jurisdiction.

Under the proposed pilot, experimental transactions could include shares, debentures, receivables certificates, investment-fund units and other securities or collective investment contracts. The tests are designed to generate evidence that can inform potential regulatory improvements.

The working group's initial 120-day mandate remains the formal framework for its broader study, while the CVM's pilot proposal provides the regulator with a concrete mechanism for testing tokenized securities before determining potential changes to the regulatory framework.

writer: Ethan Collins
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