With the international presence of the Head of Research of the World Federation of Exchanges, Pedro Gurrola, the morning panels of the Tokenize 2024 event, organized by Núclea, a leader in digital transaction infrastructure solutions and data intelligence, and by Febraban, brought discussions on how the financial and capital markets are adopting blockchain and tokenization solutions. The importance of segment governance was discussed at the event, with reflections on risks, cost reduction, supply chain intermediation, solutions, security, and regulation.
In the opening,The President of the Securities and Exchange Commission (CVM), João Pedro Nascimento, highlighted that the event is a moment to take the positive points and analyze what is already being done in the capital market.
In the first panel"Digital Asset Regulation: how to establish standards for the future?" Nascimento stated that the market is increasingly integrated, with an international convergence of technology, which includes global entities. "The world has been choosing less regulated countries that do not adhere to international regulations—unlike Brazil, which is a global reference for adherence to international regulations."
Joaquim Kavakama, a consultant at Núclea, highlighted the importance of governance to analyze the evolution of this market. "If we don't have a strong [governance] to audit and enable it to be placed on a network, we may fail to implement proper controls and a fraud could occur. It's important to follow a standard, it's important to look at the risks and how to mitigate them."
In the second panel,about "Blockchain in the Capital Markets: Value Propositions", moderated by Rodrigo Furiato from Núclea, the explanation by the Central Bank consultant, Antonio Marcos Guimarães, highlighted that in the credit market, technological evolution does not happen overnight, but involves a series of regulatory and technological advancements. A process that included, for example, the emergence of structural duplicates, the regulation of registrars and depositaries, the dematerialization process of credit instruments (for example, with the new agribusiness titles), and more recently, the tokenization of assets, with this evolution soon to include the use of Artificial Intelligence (AI). According to Guimarães, the main argument in favor of tokenization is the fact that tokens incorporate both data and business models. Furthermore, there is an ease of adding new systems and businesses to the incumbents. Finally, he raised a legal certainty issue for greater adoption of tokenization. Guimarães explained that the regulatory agency currently has many market agents' doubts about whether certain models fall under the regulation of the CVM, the Central Bank, or even sub-legislative rules. This is a question to be addressed.
Daniel Maeda, from CVM, assessed that the regulator had two different perspectives regarding the approach to cryptoeconomics, the first being adding value in existing situations (and therefore not requiring regulation), and on the other hand, with disruptive proposals, such as cryptocurrencies – a situation where regulation is appropriate, with consumer protection. He explained that, after the law addressing the issue was approved, CVM prepared an opinion on crypto-economics, with the rationale that if a token is backed by a certain asset, what applies, by analogy, is the regulation that governs that asset. For example, if a token is backed by a debenture, how will the debenture be treated. He assessed that tokenization will work, not for all products, but that it will resolve the situation of some specific issues.
The CEO of Núclea, André Daré, highlighted that thesandboxThe CVM regulatory framework related to initiatives linked to tokenization was fundamental for the emergence, for example, of BEE4 – a trading environment for shares of companies with an annual revenue of up to R$300 million, which has Núclea as an investor. Today, BEE4 already has four companies that have issued emissions and two connected brokers. "The regulator's role was fundamental in this process." I will place, among the main challenges in this process, the cost ofsetupfor tokenization. According to him, in practice, getting brokerages to trade in the world of DLT (short for "Distributed Ledger Technology") is not so simple, considering that these brokerages have legacy systems. However, he emphasized that today, the institution is assessing, based on existing legislation, which initiatives and developments are possible in the universe of tokenization, with a range of possibilities aimed at supporting and simplifying processes.
The morning also brought the aforementioned keynote speaker(main speaker of the event) Pedro Gurrola, presenting a global perspective of the technological process and discussing global monopolistic structures. Gurrola emphasized four important points: the difference between assets and their characteristics and benefits; the various links and processes of the value chain; the difficulty of implementing benefits for everyone; and the importance of the participation of regulatory agencies.
He also highlighted the growth of the market. There has been significant progress over the past 10 years, perhaps not the 'big bang' that was expected, but a meaningful advancement between what we are discussing today and what we discussed before. We already see importantplayersthe market offering important solutions based on blockchain. Thinking about the world of bags, we see progress; tokenization and digital assets are no longer frontier, marginal topics and have becomemainstreamGlobally, there is great interest and we see an adoption speed around this," he declares.
In Panel 3,Moderated by Patricia Stille, co-founder and CEO of BEE4, the morning concluded with the theme "Transition of exchanges to D+1" and the potential of Drex in securities settlement. "It is a privilege to participate in the event and promote such important discussions about innovations and their applications, highlighting DREX and its implications for the future financial market and Brazilian economy," says Patricia Stille, co-founder and CEO of BEE4.
Margareth Noda, Market Monitoring Manager at CVM, analyzed the changes initiated five years ago, presenting challenges for transaction control. "We didn't have many changes, since our trade occurred after the investors were identified. But we came very close to a change in the market infrastructure, the operators, to understand what was happening and to make decisions that could make this process easier for its participants."
Already, Marcelo Belandrino, Head of Products at JP Morgan, highlighted the role of the Brazilian tokenized currency in reducing timeframes. "To go to D+1, you need to understand the scenario to deal with foreign investors, so that they already have assets in Brazil – or the Central Bank will have to settle the currency on the same day, and for that, it will be necessary to change the deadline, as the window will have to go until 10 pm," he analyzed.
Tokenize 2024 – “Blockchain in regulated market infrastructure: challenges and opportunities” is an event by Núclea, a reference in infrastructure solutions for digital transactions and data intelligence, in conjunction with Febraban and institutional support from CVM.
Tokenize 2024 Afternoon Schedule
At 3 pm, the panel “Myths and Reality about the use of Blockchain in Regulated Market Infrastructures” will take place, with Felippe Barretto (CVM) as mediator and Leandro Sciammarella (Núclea), George Marcel Smetana (Bradesco), Guto Antunes (Itaú Digital Assets) and Jochen Mielke (B3 Digitais).
In the fifth panel, at 3:30 PM, the theme is "Practical applications of blockchain in the regulated market and implementation challenges." Cesar Kobayashi (Núclea) will moderate the conversation between Márcio Castro (RTM), Paloma Sevilha (BEE4), Marina Copola (CVM), and André Passaro (CVM).
To close the event, at 4:30 pm, the closing discussion will be on the “Regulatory agenda to accelerate innovation and market development”, with Joyce Saika (Núclea), Alexandre Pinheiro dos Santos (CVM) and Luis Vicente de Chiara (Febraban).
Service
TOKENIZE 2024 – “Blockchain in regulated market infrastructure: challenges and opportunities”
Implementation of the Nuclea and Febraban and institutional support from CVM
Data: October 10th
Time: 9am to 5pm
Local: online broadcast
Link to follow the event live: TOKENIZE 2024: Blockchain in regulated market infrastructure: challenges and opportunities – YouTube
Debate on regulation of digital assets and use of blockchain in the stock market reinforces that tokenization is here to stay this morning at Tokenize
