Brazil’s securities regulator is preparing a controlled pilot to examine how distributed ledger technology could be used across core capital-markets infrastructure. The initiative is intended to test tokenization-related processes in practice and use the findings to help shape future rules.

According to the CVM, its tokenization working group submitted a draft resolution to the agency’s board on September 18 setting out how the pilot would run. The proposal still requires board approval before the trial can proceed.

Scope of the proposed test

The draft would allow the regulator to evaluate DLT across a broad set of securities-market functions. Areas listed for testing include issuance, public offerings, distribution, secondary trading, ledger management, custody, central depository services, and settlement.

The CVM said the exercise is meant to examine whether these activities can operate through DLT networks in a way that is compatible with the existing market structure and supervisory needs. The outcome is expected to support future refinement of tokenization regulation in Brazil.

Simulated transactions only

The proposed pilot would not involve real investors or live securities. Instead, the trial would rely on simulated transactions designed to show how the technology and the regulatory framework would behave under practical operating conditions.

Assets considered for the test include shares, corporate bonds, securitized receivables and fund units. The draft also leaves room for other investment products, including collective investment contracts, to be added if that becomes necessary during the experiment.

Timeline and supervision

Under the current proposal, the program would run for 60 days. The CVM said that period could be extended by as much as 30 additional days if technical problems emerge or if more verification is required.

The regulator also plans to connect directly to the selected test networks. That setup would allow the agency to follow transaction records in real time as the pilot unfolds.

Input from the market

Bruno Gomes, the CVM official responsible for securitization and agricultural finance, said the regulator collected contributions from a range of market participants while developing the pilot.

According to Gomes, that consultation process was intended to prevent the test from being tied to a single technological model. He also said the pilot was structured so that it would not restrict future innovation as tokenization tools continue to evolve.

What comes next

For now, the immediate next step is a decision by the CVM board on the draft resolution submitted by the tokenization working group. If the board approves the proposal, the regulator can move ahead with the limited-duration pilot and assess the results before considering any regulatory adjustments.

The project remains a supervised experiment rather than a live market launch. Its stated purpose is to generate evidence on how DLT-based securities processes could work in Brazil before any broader implementation is considered.

Source: en.bloomingbit.io