sandmark.com
Argentina's securities regulator has expanded its tokenization framework to cover a much broader range of securities, potentially creating new avenues for smaller companies and alternative financing vehicles to raise capital through blockchain-based infrastructure.
The National Securities Commission (CNV) announced on 10 Jun the approval of a resolution allowing securities issued under various automatic public-offering regimes to be digitally represented onchain and distributed through regulated platforms.
The expansion extends tokenization to securities issued under simplified fundraising regimes that allow companies to access capital markets with lighter disclosure and approval requirements than traditional public offerings.
Broader access
Tokenization is the process of creating a digital representation of an asset or financial instrument on a blockchain.
The expanded regime now allows the tokenization of securities issued under virtually all automatic authorization frameworks, except for certain open-end investment funds. The underlying securities, however, must continue to exist in traditional form and remain deposited within regulated market infrastructure.
The resolution prohibits the tokenized assets from being transferred to decentralized finance protocols or traded outside authorized platforms. As a result, the regime more closely resembles regulated securities operating on blockchain rails than a fully decentralized capital market.
The regulator also extended the tokenization regulatory sandbox until 31 Dec 2027.
The expansion forms part of a wider deregulatory push by President Javier Milei's administration. In recent weeks, the CNV has broadened automatic public-offering regimes for shares, corporate bonds, financial trusts and closed-end investment funds, aiming at simplifying access to capital markets.
Why it matters
Among the key implications is the potential for smaller issuers to access investors through tokenized capital-market instruments. That could create new opportunities for small and medium-sized companies, private-credit vehicles and alternative investment structures seeking capital without pursuing a traditional public listing.
Large crypto user base
The reforms come as Argentina remains one of the world's most active cryptocurrency markets, where digital assets are a popular tool for accessing US dollar-denominated savings.
Argentina recorded an estimated $93.9bn in crypto transaction volume between July 2024 to June 2025, making it the second-largest crypto market in Latin America behind Brazil, according to Chainalysis.
Years of high inflation, repeated currency devaluations and capital controls have driven widespread adoption of dollar-linked stablecoins as households and businesses seek alternatives to holding pesos.
The tokenization push comes little more than a year after President Milei became embroiled in controversy over his promotion of a memecoin, LIBRA, which briefly surged to a multibillion-dollar valuation before collapsing and triggering investigations in Argentina and abroad.