What happened
- Specific facts/numbers: The draft program would run for 60 days with a possible 30-day extension, and would use simulated transactions rather than real securities or investors; CVM’s July 15, 2026 ordinance created the tokenization working group, and a July 31 CVM note said the group was targeting an experimental tokenization regime within 100 days, a draft rule in 60 days, and an activities report in 120 days, extendable by 30.
- Institutions involved: The main bodies are Brazil’s securities regulator CVM and its Tokenization Working Group (GTT); CVM’s July 31 meeting also involved market associations and self-regulatory bodies including Anbima, Abrasca, Ancord, ABCripto, ABToken, BEE4, CSD BR and BSM Supervisão de Mercados.
- Regulatory/technical context: The proposed simulations would cover much of the securities lifecycle—issuance through settlement—for instruments including shares, debentures, receivables certificates and fund units, and are intended to test the technical, operational and legal viability of distributed-ledger infrastructure, interoperability between networks, and possible regulatory gaps.
- What to watch next: The immediate milestone is whether the CVM board approves the draft resolution; after testing, participants are expected to submit reports that feed a final assessment and could support changes to rules or legislation.
Why it matters
This signals that Brazil is moving from tokenization discussion to regulator-led market testing, which could shape how tokenized securities are issued, traded and settled under future rules.
HKMA Relevance
Direct: This is a securities-regulator-led tokenization regime experiment by another public authority, a category of market-infrastructure and regulatory work that is directly relevant to the HKMA’s own agenda on tokenisation and digital market development.