A licensed securities depository has put ownership records on a public blockchain for the first time. Brazil’s CSD BR, which holds more than BRL 22 trillion in registered assets, has begun mirroring investment fund shares on the XRP Ledger under the first phase of a partnership with Ripple announced on September 29. The rollout starts with fund shares from Brazilian investment bank BTG Pactual.
XRPL Acts As A Mirror, Not The Master Record
CSD BR’s own systems remain the official source for registration, deposit and settlement. The XRP Ledger works as a secondary layer where authorized participants can check and audit records in near real time.
Details of the setup:
- Fund shares are tokenized using XRPL’s Multi-Purpose Token (MPT) standard
- Access is permissioned and limited to Brazilian corporate and banking clients that clear KYC and AML checks
- CSD BR keeps full control over issuance, with powers to approve participants, freeze assets and reverse transactions on regulatory or court orders
- Ripple supplies the custody infrastructure
The model fits within Brazil’s existing rules and required no new regulatory approval. CSD BR is authorized by both the Central Bank of Brazil and the Brazilian Securities and Exchange Commission (CVM).
Why Start With Mirroring
According to Daniel Polano Spreafico, head of products and clients at CSD BR, mirroring is the safest way to bring new technology into critical market infrastructure, since nothing changes for investors, issuers or participants during this phase. Silvio Pegado, Ripple’s managing director for Latin America, called the move from pilots to live record-keeping in a national capital market a milestone for the industry.
What Comes Next
Once this phase is validated, the partners plan to extend blockchain use to native asset issuance and trading between authorized participants. Real Estate Receivables Certificates (CRI) and Agribusiness Receivables Certificates (CRA), two major segments of Brazil’s fixed income market, are under consideration. Privacy features and expansion into other asset classes and international markets are also on the roadmap.
XRP Price Fails To React
The adoption news has not moved the token. Several XRP holders on X voiced frustration that yet another Ripple partnership had done little for the price.
Part of the reason lies in the structure. Settlement stays inside CSD BR’s systems in this phase, and the arrangement relies on the XRP Ledger’s infrastructure rather than XRP as a settlement asset, which limits direct demand for the token for now.
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