Brazil Regulator Forms Working Group for Tokenized Securities Rules

CoinDesk reported Monday that Brazil's tokenized real-world asset market now totals about 12 billion reais, roughly $2.34 billion, according to data from tracking platform RWA Monitor. The CVM already tested blockchain-based issuance and secondary trading in its regulatory sandbox. The working group will review those experiments as it builds a larger framework for securities issued, held and traded on distributed ledgers.

The CVM said the group will evaluate cybersecurity risks, assess whether current rules need changes, coordinate prototype testing in experimental environments, and lay the groundwork for future regulation of securities tokenization.

Tokenization elsewhere has focused on deposits. On a recent episode of PYMNTS' “From the Block” podcast, Ctrl Alt founder Matt Ong said on-chain finance requires regulated money that can move across the same networks. Tokenized deposits could work, he said, only if banks can swap them instantly with conventional balances. Citi's global head of digital assets for Treasury and Trade Solutions, Ryan Rugg, said fungibility between tokenized and traditional cash must be instantaneous.

The CVM's working group has 60 days from formal establishment to deliver its first proposal.