Brazilian financial-market infrastructure provider CSD BR has partnered with Ripple to integrate the XRP Ledger into its regulated securities infrastructure.
The initial phase of the CSD BR and Ripple partnership involves mirroring investment fund shares from Brazilian investment bank BTG Pactual onto the XRP Ledger.
The integration marks the first time a licensed central securities depository is using a public blockchain to record or mirror securities ownership records.
CSD BR's internal database remains the official legal record for registration, custody, and settlement, and the underlying assets are not being moved to the XRP Ledger.
CSD BR oversees more than 22 trillion reais, equivalent to approximately $4 trillion, in registered assets across its financial infrastructure.
Mirroring fund records on the XRP Ledger provides approved banks and companies with a near-real-time verification layer to check ownership changes directly.
CSD BR retains administrative control over the tokens, including the ability to restrict participation, freeze assets, or reverse transactions under regulatory or judicial orders.
Ripple and CSD BR plan to explore issuing and trading financial assets like Brazilian Real Estate Receivables Certificates (CRIs) and Agribusiness Receivables Certificates (CRAs) directly on the XRP Ledger.
BTG Pactual investment fund shares will be tokenized and represented on the XRP Ledger using the network's Multi-Purpose Token standard.
CSD BR is authorized by the Central Bank of Brazil and the Brazilian Securities and Exchange Commission to operate registration, depository, and settlement systems.
The blockchain verification layer is designed to reduce the slow and costly reconciliation processes typically required when banks check their books against depositories.
Participation in the mirrored ledger is restricted to corporate and banking institutions in Brazil that complete required identity verification and anti-money laundering checks.
The tokenized BTG Pactual fund shares will be secured and managed using Ripple's custody technology alongside native XRP Ledger capabilities.
The XRP Ledger integration is designed to preserve existing investor and issuer processes without requiring changes during the initial mirroring phase.
CSD BR and Ripple plan to introduce advanced confidentiality mechanisms to meet financial-market privacy requirements as more transaction activity moves onto the ledger.
Public blockchains are suitable for recording regulated securities ownership
CSD BR's administrative control over tokens defeats the purpose of using a blockchain
Mirroring existing records on a blockchain is an effective way to modernize financial infrastructure
Institutional adoption of the XRP Ledger will drive demand for the XRP token
