CSD BR, Brazil's authorized financial market infrastructure, has partnered with Ripple to use the XRP Ledger as a complementary layer for recording and auditing financial assets. The initial phase focuses on BTG Pactual investment fund shares—the first time a central securities depository for financial assets uses a public blockchain to mirror securities ownership records.
CSD BR's existing systems remain the official source of record for asset registration, deposit and settlement. The integration will evaluate gains in transparency, traceability, automation and efficiency within a regulated live transaction environment.
The Brazilian entity manages over BRL 22 trillion in registered assets. The partnership requires no new regulatory approvals or changes to participants' legal responsibilities.
BTG Pactual investment fund shares deposited at CSD BR will be tokenized using the Multi-Purpose Token standard and mirrored onto the XRP Ledger. The blockchain layer serves solely for querying and auditing. Authorized participants can validate record consistency in near real time using the complementary layer.
Access is permissioned and restricted to corporate and banking clients in Brazil who comply with Know Your Customer and anti-money laundering procedures.
CSD BR retains full control over asset issuance and administration, including participant authorization, asset freezing and transaction reversals through clawbacks when mandated by regulatory or judicial orders.
Future phases could expand to include native asset issuance and trading for authorized participants. The current implementation provides a framework for evaluating blockchain's role in traditional finance infrastructure without altering core settlement mechanisms.
