Key Highlights
- Brazil’s CVM created a 14-member group to develop rules for tokenized securities.
- The group has 60 days to propose an experimental regulatory framework and 120 days to complete its wider work.
- Brazil is expanding regulated digital asset markets while also giving authorities more power to block and seize crypto linked to organized crime.
Brazil is putting tokenized securities on a regulatory timeline. Last Friday, the country’s securities regulator, the Comissão de Valores Mobiliários (CVM), created a 14-member working group to study how securities can be issued and managed on blockchain-based systems.
According to the official release, the group has 60 days to propose an experimental regulatory framework and 120 days to complete its wider work. The new group, known as the Securities Tokenization Working Group or GTT, will look at almost every stage of the tokenized securities market. Its work will cover registration, deposits, custody, trading, and settlement.
It will also examine cybersecurity, operational risks, and how distributed ledger technology (DLT) could change the way Brazil’s capital market operates.
60-day deadline for tokenization rules
The first major deadline has already been set. Within 60 days of its installation, the GTT must submit a proposal for an experimental regulatory regime to the CVM Board. The group will then continue its broader work for up to 120 days, with the possibility of a further 30-day extension.
At the end of the process, it will submit a final report containing its findings and recommendations.
The group will not focus on one particular blockchain or digital token. Instead, its role is to study how tokenized securities can fit into Brazil’s existing financial system while addressing the risks that come with the technology.
To do this, the GTT will compare regulatory approaches in Brazil and other countries, study the results of regulatory sandbox programs, and hold discussions with regulators, market participants, and other stakeholders. It may also evaluate prototypes in experimental environments and consider whether Brazil’s existing rules need to be updated.
CVM brings regulators and industry experts together
The group includes representatives from 14 areas of the CVM. It can also bring in representatives from government bodies, self-regulatory organizations, market associations, and outside experts. José Alexandre Vasco and Bruno Gomes will coordinate the initiative, which will receive support from different areas of the regulator.
CVM President Otto Lobo described tokenization as a major change for financial markets.
“Tokenization represents a structural transformation of the capital market and requires equally innovative regulatory action,” Lobo said.
Digital asset market is expanding
The move comes as Brazil’s digital asset market continues to grow. The CVM has estimated that tokenized asset volumes in the country could exceed $740 million. Existing crowdfunding rules also allow securities offerings of up to 15 million reais, or about $2.78 million, for a maximum period of 180 days.
Brazil is also building other parts of its digital asset infrastructure. The country’s central bank is developing Drex, a distributed-ledger-based digital currency project. Meanwhile, B3, Brazil’s main stock exchange, recently launched options on Bitcoin, Ethereum, and Solana futures, giving traders new regulated tools to manage exposure to the three assets.
Regulatory push comes alongside stronger crypto enforcement
Amidst all this, the country has not stopped fighting against illicit digital assets. Earlier this year, the country enacted Law No. 15.358/2026, which allows authorities to freeze, block, and confiscate cryptocurrencies and other digital assets linked to organized crime, subject to legal procedures.
The law also strengthens cooperation between Brazilian authorities and foreign agencies to trace and recover illicit funds. Together, these developments indicate that Brazil is pursuing both regulatory development and enforcement.
Also Read: Ripple Launches UDAX Accelerator in Brazil for XRP Ledger Startups
