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UNIBrazil's CVM chief Otto Lobo says mandatory tokenisation needed to police $2.32tn fund market
The president of Brazil's securities regulator says asset tokenisation and AI surveillance are needed to oversee a fund industry of more than 34,000 structures, with B3 building a tokenisation platform for 2027.
Why it matters: Brazil's regulator is testing blockchain-based supervision of a $2.32tn fund market, a large-scale example of tokenisation moving from pilots into core market infrastructure.
Key points
- Otto Lobo, president of the CVM, says the fund industry's net worth has reached $2.32tn across over 34,000 active structures
- The CVM is testing three distributed ledger technologies and plans smart-contract compliance and KYC checks at asset level
- Entry costs to money market funds could fall to as low as $20, and B3 expects its tokenisation platform to be ready by 2027
Brazil's securities regulator is pushing mandatory tokenisation of assets to overhaul how it supervises the country's fund market, according to Bitcoin.com News. Otto Lobo, president of the CVM, said the current oversight infrastructure has been overwhelmed by the growth of the fund industry, which Valor Econômico reported has reached a net worth of $2.32tn across more than 34,000 active structures.
Speaking at a conference, Lobo said distributed ledger technologies offer advantages over traditional methods, including immediate settlement, the removal of counterparty risk and a continuous audit trail that records the final beneficiaries of each transaction. He said anti-money-laundering and know-your-customer checks would be applied at the asset level through smart contracts, and that the regulator is already testing three DLTs.
Costs and oversight
The modernisation is expected to add 1,200 employees over the next few years. It follows a Supreme Court decision allowing the CVM to keep 70% of its inspection fee revenue. Lobo also said tokenisation could cut entry costs to money market funds to as little as $20, widening access to new customers.
The CVM's tokenisation working group has been running a pilot to map contract logic and test cybersecurity risks before any full blockchain rollout. Separately, B3, Brazil's stock exchange, is developing a tokenisation service that will share liquidity with traditional securities and is expected to be ready by 2027.
What to watch: B3 expects its tokenisation platform, which will run alongside traditional securities, to be ready by 2027.
Live updates on NewsFeeds:AIDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Bitcoin.com News’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
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