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, reference in infrastructure solutions for digital transactions and data intelligence, and by Febraban, they brought discussions on how the financial and capital markets are adopting blockchain and tokenization solutions. The importance of governance in the sector was discussed at the event, with reflections on risks, cost reduction, intermediation in the chain, solutions, security and regulation.
In the openingthe President of the Securities and Exchange Commission (CVM), John Peter Birth, 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"Regulation of Digital Assets: how to establish standards for the future"?”, Nascimento stated that the market is becoming increasingly integrated, with an international convergence of technology, that includes global entities. "The world has been choosing less regulated countries that are not compliant with international regulations" – differently from Brazil, what is a global reference for adherence to international regulations.”
Already Joaquim Kavakama, consultant of Núclea, highlighted the importance of governance to analyze the evolution of this market. If we do not have [a governance] strong enough to audit and allow it to be placed on a network, we may make the mistake of not putting in place the proper controls and a fraud may occur. It is important to follow a standard, it is important for us to look at the risks and how to mitigate them.”
In the second panel, about "Blockchain in the Capital Market: Value Propositions", mediated by Rodrigo Furiato, of the Nucleus, the explanation of 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 advances. A process that included, for example, the emergence of structural duplicates, the regulation of registrars and custodians, the process of dematerialization of credit securities (for example, with the new agribusiness titles and, more recently, the tokenization of assets, given that, soon, this evolution should include the use of Artificial Intelligence (AI). According to Guimarães, the main argument in favor of tokenization is the fact that tokens incorporate both the data and the business models. Furthermore, there is an ease of adding new systems and businesses to the incumbents. He pointed, finally, a question related to legal security for greater adoption of tokenization. Guimarães explained that the regulatory body has, today, many market agents have questions about whether certain models fit within the CVM regulation, from Bacen or even infralegal. This is a question to be addressed
Daniel Maeda, from CVM, assessed that the regulator had two different views regarding the approach to crypto-economics, being, the first, adding value in situations that already exist (and, therefore, it does not allow for regulation and, on the other hand, with disruptive proposals, case of cryptocurrencies – situation that requires regulation, with consumer protection. He explained that, after the approval of the law addressing the issue, the CVM prepared an opinion on cryptocurrency economy, with the rationale that, if a token is backed by a certain asset, what is worth, by analogy, it is the application of the standard that deals with this asset. For example, if a token is backed by a debenture, how the debenture will be treated. He assessed that tokenization will work, not for all products, but it will resolve the situation of some specific issues
The CEO of Núclea, André Daré, highlighted that thesandboxCVM's regulatory framework related to tokenization initiatives was fundamental for the emergence, for example, from BEE4 – stock trading environment for companies with annual revenue of up to R$ 300 million and that have Núclea as an investor. Today, BEE4 already has four companies that have made issuances and two connected brokers. "The role of the regulator was fundamental in this process"."I'll give a place", among the main challenges in this process, the cost ofsetupfor tokenization. According to him, in practice, putting brokers to trade in the world of DLT (short for "Distributed Ledger Technology") is not that simple, considering that these brokers have legacy systems. He highlighted, however, what, today, the institution has been evaluating, based on existing legislation, what are the possible initiatives and evolutions in the universe of tokenization, with a range of possibilities aimed at supporting and simplifying processes
The morning brought, yet, the already mentioned keynote speaker(main speaker of the event) Pedro Gurrola, presenting a global perspective on 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 bodies
He highlighted, also, the market growth. "There has been a strong evolution in the last 10 years", perhaps not the 'big bang' that was expected, but a significant progress between what we are discussing today and what we discussed before. We already see importantplayersof the market offering important solutions based on blockchain. Thinking about the world of bags, we see progress; tokenization and digital assets are no longer a border issue, marginal and have becomemainstream. In global terms, there is a great interest and we see a speed of adoption around this, declare.
On Panel 3moderated by Patricia Stille, co-founder and CEO of BEE4, closed the morning with the theme Transition of stock exchanges to D+1 and the potential of Drex in the settlement of securities. "It is a privilege to participate in the event and promote such important discussions about innovations and their applications", with a focus on 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 of the CVM, analyzed the changes that started five years ago, presenting challenges for transaction control. "We didn't have many changes", since our trade occurred after the identification of the investors. But we got very close to the change in the market infrastructure, two operators, to understand what was happening and 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 deadlines. "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, because the window will have to go until 10 PM, analyzed
The Tokenize 2024 – "Blockchain in regulated market infrastructure: challenges and opportunities" is an event by Núclea, 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" takes place, with Felippe Barretto (CVM) as the 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 mediate 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 discussion and closing will be about 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
