Argentina Launches Tokenization Framework, Leading Latin America in Digital Finance

Argentina’s National Securities Commission (CNV) has introduced a pioneering tokenization framework, positioning the country as a leader in digital finance within Latin America. This initiative allows for the digital representation of various financial instruments, including publicly traded stocks, dual-listed shares, negotiable bonds, closed-end mutual fund units, and trust participation certificates. By integrating these digital assets into existing legal frameworks, Argentina is paving the way for modernized securities issuance that aligns with global financial and technological trends.

The new framework provides a legal pathway for the optional digital representation of financial instruments, ensuring they remain legally recognized under current regulations. This move is part of a broader effort to modernize Argentina’s financial infrastructure, following the introduction of new regulations for virtual asset service providers (VASPs) in March. These regulations set clear compliance standards, ensuring that the growth of digital finance occurs within a robust legal and regulatory environment that protects users and promotes responsible innovation.

To facilitate the testing and refinement of this initiative, Argentina will implement a regulatory sandbox for one year. This controlled space allows firms and regulators to assess the practical challenges and benefits of tokenized asset issuance before expanding the program. During this period, feedback will be gathered through public consultation, which may lead to adjustments or improvements in the framework. This approach reflects a global trend where regulators balance innovation with investor protection by allowing controlled experimentation before finalizing new financial models.

One of the key highlights of Argentina’s tokenization regime is its streamlined process. Issuers will not require special approvals to create tokenized assets; instead, they will need only a generic digitization permit. Registered VASPs will act as intermediaries between traditional finance and the emerging digital ecosystem, authorized to facilitate the issuance and distribution of tokenized securities within the sandbox framework.

Roberto Silva, President of the CNV, emphasized Argentina’s ambition to lead the region in digital finance adoption. He stated that the country aims to be a regional beacon in this field, ensuring it has all the latest technology and is not left behind in global developments. This initiative reflects the CNV’s goal to position Argentina not only as an adopter of blockchain and digital assets but as a pace-setter among its Latin American peers.