CSD BR, a central securities depository authorized by Brazil’s financial market regulator, has entered a strategic partnership with Ripple. In the first phase, CSD BR will use the XRP Ledger as an additional layer for recording and auditing financial assets, starting with mirrored records of BTG Pactual investment fund shares. Ripple said this is the first time a central securities depository for financial assets has used a public blockchain to mirror securities ownership records. The structure is being developed within the current regulatory framework, without changing the legal responsibilities of participants or requiring new regulatory approval. CSD BR will keep full control over asset issuance and management, while XRPL will serve as a supplementary layer for authorized participants to verify record consistency on a near real-time basis. The environment will run on a permissioned basis and will be limited to Brazilian corporate and banking clients subject to regulated KYC and AML procedures. CSD BR manages more than 22 trillion Brazilian reais in registered assets, and the partnership is meant to assess blockchain’s practical gains in transparency, traceability, automation, and efficiency.
CSD BR, a central securities depository authorized by Brazil’s financial market regulator, said it has formed a strategic partnership with Ripple.
In the first phase of the arrangement, CSD BR will begin using the XRP Ledger, or XRPL, as an additional layer for recording and auditing financial assets. The initial scope covers mirrored records of BTG Pactual investment fund shares. According to a Ripple release, this is the first time a central securities depository for financial assets has used a public blockchain to mirror securities ownership records.
The model is being developed within the existing regulatory framework. It does not change the legal responsibilities of participants and does not require new regulatory approval. CSD BR will retain full control over asset issuance and management, while XRPL will function as a supplementary layer that allows authorized participants to transparently verify record consistency on a near real-time basis.
The environment will operate on a permissioned basis and will be limited to Brazilian corporate and banking clients subject to regulated KYC and AML procedures.
CSD BR manages more than 22 trillion Brazilian reais in registered assets. The partnership is intended to evaluate the practical gains blockchain technology may bring in transparency, traceability, automation, and efficiency.
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