Brazil’s securities regulator is moving ahead with plans to examine how blockchain-based infrastructure could be used across the country’s capital markets. The Comissão de Valores Mobiliários (CVM), Brazil’s securities and exchange commission, has established a 120-day working group dedicated to studying tokenization and developing the foundations for a future regulatory framework for tokenized securities.
The initiative was formally created through Portaria CVM/PTE 177, published on July 17, 2026. The working group has an initial mandate of 120 days, with the possibility of a 30-day extension. Its work covers areas including the registration, deposit, custody, trading and settlement of securities using distributed ledger technology (DLT).
Brazil Begins Formal Study of Securities Tokenization
The CVM’s initiative goes beyond cryptocurrencies. The regulator is examining how DLT could be integrated into the regulated securities market and whether existing rules are sufficient for financial assets represented or processed through distributed ledgers.
The working group brings together representatives from 14 organizational units within the CVM. It can also work with government agencies, self-regulatory organizations, industry associations and invited specialists.
Its responsibilities include studying tokenization experiments in Brazil and other countries, reviewing regulatory sandbox experiences, consulting with market participants and evaluating how DLT could affect the structure and operation of Brazil’s capital markets.
What Does the 120-Day Working Group Do?
The group has been tasked with examining both the potential benefits and risks associated with tokenized securities.
Among its responsibilities are evaluating cybersecurity issues, identifying possible gaps in the current regulatory framework, coordinating experimental prototypes and developing technical recommendations that could eventually support new regulatory measures.
The CVM has also said the working group will establish the foundations for future regulation covering the tokenization of securities.
That means the 120-day period is not itself a final tokenization rule. Instead, it is part of a regulatory process designed to gather evidence before Brazil determines how tokenized securities should operate under its capital-market framework.
CVM Has Already Submitted a DLT Pilot Proposal
The process has moved quickly since the working group was created.
On September 15, 2026, the Tokenization Working Group submitted a draft resolution to the CVM’s Collegiate proposing the creation of the CVM DLT Pilot Program.
The proposed program would allow experimental operations involving the issuance, offering, distribution, trading, registration, custody, centralized deposit and settlement of securities through distributed ledger technology networks.
The pilot is intended to help the regulator determine whether DLT is technically, operationally and legally viable for Brazil’s securities market. It would also allow the CVM to study interoperability between different networks and identify potential risks, vulnerabilities and regulatory gaps.
Which Securities Could Be Tested?
The proposed pilot is designed to cover more than one type of financial asset.
According to the CVM, experimental operations could include shares, debentures, receivables certificates, investment-fund units and other securities or collective investment contracts.
This is significant because it places tokenization within the broader financial-market infrastructure rather than treating it solely as a cryptocurrency issue.
The experiments would allow regulators and participating institutions to examine how tokenized securities could function throughout different stages of the market, from issuance and distribution to trading, custody and settlement.
How Long Would the DLT Pilot Last?
Under the proposal submitted by the working group, the experimental tests would run for 60 days, with the possibility of an extension of up to 30 additional days.
The CVM would directly monitor the tests through mechanisms that could provide access to the selected networks and allow real-time reading of transaction records.
After the experiments, participating entities would submit reports describing their results. A management committee made up of CVM members participating in the working group would then consolidate the findings and submit a final evaluation to the regulator’s Collegiate.
Why Brazil Is Studying Tokenization
Tokenization refers to representing an asset or financial right digitally on a blockchain or another distributed ledger. In capital markets, the technology could potentially change how securities are issued, recorded, transferred, traded and settled.
Traditional securities transactions can involve multiple systems and intermediaries. DLT-based infrastructure may allow some records and processes to be shared or automated across a network.
However, introducing blockchain technology into regulated financial markets also creates questions around cybersecurity, legal ownership, custody, operational resilience, investor protection and market supervision.
The CVM’s working group is therefore examining both the technological possibilities and the regulatory consequences before establishing a permanent framework.
Brazil Wants Innovation Without Removing Market Safeguards
The CVM has positioned the initiative as part of its effort to modernize financial-market regulation while maintaining investor protection, market integrity and legal certainty.
When the working group was announced, the regulator said its purpose was to follow technological developments and develop regulatory solutions capable of supporting innovation while preserving those safeguards.
The approach also involves consultation with market participants. In July, more than 50 people from the CVM and organizations including Anbima, Abrasca, Ancord, ABCripto, ABToken, BEE4 and CSD BR participated in discussions about possible experimental tokenization frameworks.
Brazil’s Tokenization Rules Are Not Final Yet
Despite the creation of the working group and the proposed DLT pilot, Brazil has not yet finalized a comprehensive set of rules governing securities tokenization.
The current process is experimental and investigative. The CVM is using the working group and proposed pilot to collect information that could help determine whether existing regulations need to be changed or supplemented.
The eventual regulatory framework could therefore depend on what the experiments reveal about technology, market infrastructure, investor protection and legal requirements.
What Happens Next?
The next stage is for the CVM to consider the proposed DLT pilot and, if approved, oversee the experimental operations.
The results could provide the regulator with practical information about how tokenized securities perform in real market environments. The findings may also identify areas where existing legislation or regulations need clarification.
The working group’s broader mandate will continue beyond the initial pilot proposal, with a final report expected at the conclusion of its 120-day period, subject to the possible 30-day extension provided in its mandate.
What Brazil’s Move Means for the Digital Asset Industry
Brazil’s initiative shows that the regulatory conversation around blockchain is expanding beyond cryptocurrencies.
For financial institutions, tokenization could eventually provide another infrastructure option for issuing and managing traditional securities. For blockchain companies, a regulated testing environment could offer an opportunity to demonstrate how distributed ledger technology can operate within established capital-market requirements.
But the CVM’s approach also makes clear that technological adoption will be evaluated alongside regulatory safeguards. The outcome of the pilot and subsequent regulatory discussions will help determine the role tokenized securities can play in Brazil’s financial system.
Frequently Asked Questions
What is Brazil’s tokenization working group?
It is a CVM working group created to study distributed ledger technology, conduct tests, develop technical recommendations and help establish the foundations for future regulation of tokenized securities.
How long will the CVM working group operate?
The working group has an initial duration of 120 days and can be extended by another 30 days.
Has Brazil finalized its tokenization rules?
No. The CVM is still developing its regulatory approach. The working group and proposed DLT pilot are intended to provide evidence for future regulatory decisions.
What is the CVM DLT Pilot Program?
It is a proposed experimental program for testing securities-market operations using distributed ledger technology. The proposal was submitted to the CVM’s Collegiate on September 15, 2026.
Which securities could be tested?
The proposed pilot could include shares, debentures, receivables certificates, investment-fund units and other securities or collective investment contracts.
How long would the proposed DLT tests last?
The proposed experimental operations would last 60 days, with a possible extension of up to 30 additional days.
Sources
- Brazilian Securities and Exchange Commission (CVM) — Tokenization Working Group
- CVM — Tokenization Working Group official page
- CVM — DLT Pilot Program proposal
- CVM — Market participants discuss tokenization framework
Editorial note: This article is for informational purposes only and does not constitute investment, financial or legal advice.
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