Brazil’s securities regulator forms task force with 60-day deadline for tokenization proposal

Brazil’s securities watchdog just put tokenization on a formal clock. The Comissão de Valores Mobiliários (CVM) launched the Securities Tokenization Working Group, known by its Portuguese acronym GTT, on July 17, giving the team 60 days to deliver an experimental regulatory proposal for securities issued on distributed ledger technology platforms.

The GTT is made up of 14 members drawn from CVM staff and external participants. Its scope covers essentially every layer of the tokenized securities stack: registration, custody, trading, settlement, cybersecurity, and operational risk.

What the GTT is actually building

The 60-day sprint is focused on producing a concrete proposal for an experimental regime. The broader mandate extends to 120 days, with an option for a 30-day extension. By the end of that window, the GTT is expected to deliver a comprehensive report and set of recommendations to the CVM board.

CVM President Otto Lobo framed the initiative as a pivotal moment for the country’s capital markets.

“This movement towards tokenization is a critical transformation of the capital markets,” Lobo said, underscoring the need to balance innovation with safeguards.

The working group isn’t picking favorites among blockchain protocols or specific tokens. Instead, it’s focused on fitting on-chain securities into Brazil’s existing capital market infrastructure.

Why Brazil, and why now

The CVM estimates that tokenized asset volumes in the country will exceed $740 million. The country’s existing rules already allow some on-chain activity. CVM crowdfunding regulations currently permit issuances of up to 15 million reais, roughly $2.78 million, for a maximum duration of 180 days.

Brazil’s central bank has also been active in the broader digital asset space, having developed the Drex platform, a central bank digital currency project built on DLT. The CVM’s move with the GTT runs parallel to that effort, creating a regulatory environment where tokenized securities and digital payment rails could eventually converge.

What this means for investors

The $740 million projection for tokenized asset volumes represents a meaningful slice of Brazil’s capital markets. Since restructuring its equity crowdfunding regulations under Resolution 88 in 2022, Brazil’s CVM has made significant strides in addressing the complexities associated with tokenization, enabling a multitude of tokenized offerings to emerge in the market. In early 2025, CVM announced plans for public consultations aimed at updating the regulatory framework for tokenized securities and securitization platforms.

Traders and investors should watch two things in the near term. First, whether the 60-day proposal includes a sandbox-style approach that lets firms test tokenized issuances under supervision, or whether it attempts to create permanent rules from the start. Second, which external participants are sitting on the GTT, as their identities will signal whether the framework leans toward traditional finance incumbents, crypto-native firms, or some combination.

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