CSD BR, a Brazilian financial-market operator responsible for more than 22 trillion reais in registered assets, roughly $4 trillion, has started placing records for selected BTG Pactual investment funds on the public XRP Ledger.
According to a release shared with CoinDesk, CSD BR is using the blockchain as a second record of ownership for shares in selected BTG Pactual funds. Its existing database remains the official record for registration, custody and settlement.
BTG Pactual is described in the report as Latin America’s largest investment bank. CSD BR operates regulated registration, securities-depository and settlement systems in Brazil.
A blockchain copy, not a transfer of the official books
The assets registered with CSD BR are not being moved onto XRP Ledger. Instead, fund shares deposited with CSD BR are represented on XRPL as tokens while the depository’s own system keeps legal primacy.
A depository maintains the official list of who owns which securities. When an investor buys into a fund, the depository updates its records. Banks acting for investors keep their own books as well, then compare them with the depository’s records on a regular basis to confirm they match.
That process, known as reconciliation, is slow and costly, and a mismatch can delay a trade.
Under the new setup, approved banks and companies can read the blockchain copy directly and compare it with CSD BR’s database at any time, instead of checking their own books after the fact. Every change on XRP Ledger is publicly recorded, including any reversal made by CSD BR, which means a gap between the two records would be visible.
Why CSD BR chose a public blockchain
Many banks and depositories have tested private blockchains open only to invited members. CSD BR is taking a different route by using a public chain while keeping control over who can hold and transfer the tokens.
Anyone can read token movements on XRP Ledger, but CSD BR still decides who is allowed to own and move those tokens.
The tokens use XRP Ledger’s Multi-Purpose Token standard, which the report says was built for financial assets whose issuers need tighter controls than cryptocurrencies such as XRP offer. CSD BR can restrict participation and can freeze assets or reverse transactions when required by a regulator or a court. Participants must still pass standard identity and anti-money-laundering checks.
The project starts with live fund records
Ripple and CSD BR said the initiative begins with live fund records, not test assets and not a closed pilot network.
That places the effort beyond many blockchain pilots banks have run over the years. Real fund ownership records are being copied onto a public ledger, even though CSD BR’s existing system still has the final legal authority.
CSD BR was founded in 2018 and is authorized by both Brazil’s central bank and its securities regulator. Its systems register and maintain positions in instruments including securities, derivatives and other financial assets.
Next step: issuing and trading assets directly on XRPL
The larger shift would come later. Assets issued and traded directly on a blockchain can change hands and settle in seconds, compared with the day or more that ordinary securities trades can take to reach final settlement. Mirroring live records first gives the companies a working base to test that model.
Once CSD BR is comfortable with the mirroring system, the companies plan to test issuing assets directly on XRP Ledger and allowing approved participants to trade them there.
Future candidates include Brazilian real-estate receivables and agribusiness receivables, two established segments of the country’s fixed-income market.