Brazil's securities regulator CVM received 11 proposals for its DLT pilot program. The Tokenization Working Group collected the submissions from market groups. The program supports experimental securities operations on distributed ledger networks.
Who submitted proposals
The proposals came from ABBC, ABcripto, ABFintech, ANBIMA, and B3. Other applicants included BEE4 & Nuclea, CSD, Liqi, and Real Price & Registro de Imóveis do Brasil. The regulator reported more than triple the expected number of projects.
Pilot program scope
The pilot tests issuance, offering, trading, bookkeeping, custody, deposit, and settlement of securities. It also examines post-trade activities on distributed ledger technology. The goal is to assess technical, operational, and legal viability.
Regulatory review
All proposals will be reviewed for adequacy and pending issues. Final evaluations will go to the CVM board with results, risks, and regulatory recommendations. The regulator will then consider possible normative or legal improvements.
The tokenization work has four workstreams covering regulation, infrastructure, governance, and supervision. The regulatory workstream closed with the publication of CVM Resolution 249. Work continues on infrastructure, governance, and market supervision.