The Argentine Securities Commission (CNV) began testing a new mode of tokenization of the assets of the stock market, such as shares, bonds, shares of closed investment funds, debt papers and double listing assets.

The essence of the service lies in the digital presentation of traditional securities using the distributed registry technologies (DLT), which should provide investors with security and transparency of transactions with securities.

For testing, CNV will create a regulatory sandbox for a period of one year, during which the industry specialists will be able to test the procedures for tokenize securities, collect reviews and analyze possible implementation problems.

Virtual assets registered in Argentina will be allowed to participate in the pilot project, who can offer users tokenized securities on their platforms and in mobile applications.

“Argentina crypto participants will be able to use the advantages of tokenization, including simplifying the processes of emission, increasing the liquidity of assets and a decrease in operating costs. After the completion of the annual test period, the released tokens will remain in circulation, ”CNV said.

Emitters will be able to produce tokenized securities without additional permission of the regulator, if they initially received CNV consent to digitalization, and the securities themselves were deposited in the central depository (ADCVN). At the same time, their clients will have the opportunity to trade tokens, and if necessary, convert them back into traditional formats and fiat currencies.

Earlier, the House of Deputies of Argentina approved an official investigation against Libra’s crashed memcoid, where about 75,000 investors lost more than $ 280 million.