In addition to shares, BDRs, ETFs, and FIIs, the platform will also be able to receive tokenized assets and fractional shares

B3, the B3, Brazilian Stock Exchange and OTC, will develop a new technology infrastructure, 100% cloud-based, for its central depository. The project will be carried out in partnership with Swedish company Vermiculus and is scheduled for completion in 2025.

With the modernization of the current central depository, implemented in 2004, B3 will have the ability to respond to capital markets’ demands and growth over the coming 15 years—both with regards to new products and services and number of investors, issuers, and assets under custody.

Viviane Basso, B3’s Vice-President of Operations – Issuers, Depository and Over-the-Counter, highlights that the depository’s development will cut the time to market for new initiatives and demands from B3’s customers. “This technology reaffirms our commitment to continuously evolve and serve the market as a whole well. It is a platform that will be available for other infrastructures, while ensuring soundness and security for participants, such as investors, brokers and investment banks, issuers, and regulators,” said Basso.

Benefits of a cloud-based depository: scheduled for completion in 2025, the depository with cloud technology will be created using an agile model and envisages staged deliveries. The transformation will take place from the inside out, with no impact for customers, while maintaining the current interfaces.

Participants will perceive the benefits of the new platform over time as services are implemented. These services include:

• increased ability to receive new investors, issuers, and assets;
• receive new types of assets, such as tokens and fractional shares;
• simpler provision of services to other market infrastructures, while ensuring soundness and security;
• improved position reconciliation for participants;
• increased agility in the disclosure of corporate events (such as dividends and interest on capital).
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According to Rodrigo Nardoni, B3’s vice-president of Technology and Cybersecurity, the depositary’s evolution is part of the digital transformation process the company has been undergoing in recent years. “B3 has the role and responsibility of providing a structure capable of serving one of the main markets in the world. Therefore, we are always focused on providing the most innovative solutions to our customers and partners. Last year we announced a partnership with Oracle and Microsoft aiming at migrating some of our services to the cloud, and now we are taking another major step with the depository,” says Nardoni.