Brazil's Comissão de Valores Mobiliários (CVM), the country's securities regulator, has launched Resolution 249, an experimental program to test how decentralized ledger technologies can modernize the issuance, operation, and management of securities.
The pilot program operates in a highly controlled environment where all operations are simulated using virtual stocks and funds, protecting real securities from financial risk. The initiative will explore the feasibility of executing all securities operations on decentralized platforms, comparing the benefits and drawbacks of public and private blockchains.
Focus Areas
The program will examine cybersecurity and operational risks specific to digital securities platforms, including interoperability and network resilience issues. Any blockchain network introduced to the pilot must encode market principles into smart contract logic to ensure regulatory compliance by default. While security operations will be private, each transaction must remain auditable by market regulators.
Working proposals will be accepted only from organizations within the CVM's tokenization working group, overseen by a steering committee composed of members from that group.
Broader Tokenization Efforts
The pilot follows the establishment of a special tokenization working group in July, which will issue recommendations for developing a regulatory framework for tokenized securities. CVM president Otto Lobo stated that tokenization is already transforming capital market infrastructure internationally, bringing opportunities to increase efficiency and innovation.
B3, Brazil's largest stock exchange, has announced that development of a parallel tokenization platform is underway, targeting a 2027 launch with an in-house-developed stablecoin. The initial system will merge digital and traditional liquidity pools to manage liquidity efficiently.
