Brazil CVM proposes parallel DLT and traditional market infrastructures, pilot program

Brazil's securities regulator CVM, led by Otto Lobo, signaled it will allow tokenized and traditional market infrastructures to operate in parallel, following the completion of its tokenization working group's first phase. The group recommended a pilot program for DLT-based issuance, trading, and settlement. This marks a concrete regulatory step toward integrating digital assets into the formal capital market, potentially setting a precedent for other emerging markets.