CSD BR, a Brazilian market operator overseeing over 22 trillion reais (approximately $4 trillion) in registered assets, has begun using the XRP Ledger (XRPL) to mirror ownership records for investment funds managed by BTG Pactual. BTG Pactual is the largest investment bank in Latin America, providing asset management and investment services for institutional and private clients.
XRP Ledger integration announced
In a partnership with Ripple, CSD BR will tokenize selected shares of BTG Pactual funds deposited with the market operator. These shares will be mirrored onto XRPL using the protocol’s Multi-Purpose Token standard. Despite this new setup, CSD BR’s infrastructure remains the official system of record for registration, custody, and settlement.
The move does not transfer any portion of the $4 trillion in assets onto the blockchain. Instead, XRPL will serve as an additional layer for verification and auditing of live financial records.
What sets the initiative apart is the use of actual, live fund records rather than simulated assets or closed proof-of-concept environments.
Enhancing efficiency and compliance
Permitted institutions will gain the ability to compare blockchain records directly with CSD BR’s official database nearly in real time. This approach could reduce the reconciliation workload typically required across banks, custodians, and securities infrastructure providers.
CSD BR retains all institutional controls: it can limit who holds or transfers the tokenized assets, freeze holdings, and reverse transactions in compliance with regulatory or court directives. All participants in the system continue to follow strict know-your-customer (KYC) and anti-money-laundering processes.
Institutional processes, including the implementation of KYC and the possibility for regulatory asset freezes, are fully preserved within the tokenization framework. CSD BR continues as the ultimate authority for custody and transaction reversal.
These controls ensure that the new blockchain layer enhances transparency and efficiency without reducing oversight.
Potential for direct onchain asset issuance
The partnership signals expanding interest in tokenized assets on XRPL, especially among institutional players.
Once the current mirroring process is fully tested, CSD BR and Ripple plan to explore the direct issuance and trading of financial instruments on XRPL. Future tokenized offerings may include Brazilian real-estate receivables and agribusiness receivables.
This development could move the relationship from blockchain-assisted recordkeeping to the creation of complete onchain capital-market infrastructure.
Ripple has previously developed custody-to-tokenization infrastructure for global clients. XRPL has also supported institutional projects involving tokenized Treasury instruments and cross-border settlement.
Earlier this year, Ripple, Mastercard, Ondo, and JPMorgan completed a tokenized Treasury redemption on XRPL, utilizing conventional banking rails for the cash settlement leg.
Mini dictionary: CSD BR is Brazil’s central securities depository, responsible for the registration, custody, and settlement of financial assets, acting as a key infrastructure institution in the country’s capital markets.
| Feature | CSD BR Infrastructure | XRP Ledger (XRPL) |
|---|---|---|
| Official registry | Yes | No (mirroring only) |
| Asset custody | Yes | No |
| Settlement | Yes | No |
| Transparency | Limited | Blockchain auditability |
| Reconciliation workload | Higher | Lower (near real-time check) |
| KYC/AML controls | Yes | Retained via CSD BR |
| Direct asset issuance | Planned in future | Planned in future |
