Brazilian market infrastructure provider CSD BR has partnered with Ripple to use the XRP Ledger (XRPL) as an additional record and audit layer for regulated financial assets, starting with investment fund shares from BTG Pactual.
CSD BR will continue to maintain the legally authoritative records for registration, custody and settlement, while XRPL will mirror ownership data so authorized participants can verify records more transparently and in near real time.
CSD BR currently has more than BRL 22 trillion in registered assets, making the initiative one of the larger institutional uses of a public blockchain inside Brazil’s regulated capital markets.
CSD BR Will Mirror Fund Records on the XRP Ledger
The first phase will focus on BTG Pactual investment fund shares already deposited with CSD BR.
Those shares will be tokenized and mirrored on XRPL using the Multi-Purpose Token (MPT) standard. The blockchain record will serve as a complementary audit layer rather than replacing CSD BR’s existing systems.
CSD BR’s own infrastructure will remain the official source of record, while the blockchain layer gives approved participants another way to check the consistency of ownership data.
| Project Detail | Current Setup |
| Market infrastructure provider | CSD BR |
| Blockchain | XRP Ledger |
| First assets | BTG Pactual investment fund shares |
| Token standard | Multi-Purpose Token (MPT) |
| Official source of record | CSD BR systems |
| XRPL role | Mirroring, querying and auditing |
| Access | Permissioned for approved corporate and banking clients |
Table 1. How the CSD BR and XRP Ledger Integration Works
The Project Uses a Public Blockchain With Permissioned Access
Although XRPL is a public blockchain, the environment being created for the CSD BR project will operate on a permissioned basis.
Access will be limited to corporate and banking participants in Brazil that meet applicable Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.
CSD BR will also retain control over core compliance and governance functions. That includes the ability to do the following:
- Authorize participating institutions
- Freeze individual assets
- Reverse transactions through clawback mechanisms where required
- Maintain control over issuance and asset administration
Ripple Custody Is Part of the Architecture
The setup combines Ripple’s custody infrastructure with native XRPL functionality. CSD BR will use that architecture to support tokenized financial assets while keeping the existing regulated structure intact.
According to Ripple, the purpose of the first phase is to test whether blockchain can improve transparency, traceability, automation and operational efficiency in a real market environment.
The current regulatory framework remains in place, and Ripple says the project does not require new regulatory approvals or change market participants’ legal responsibilities.
CSD BR Has More Than BRL 22 Trillion in Registered Assets
The scale of CSD BR makes the project more significant than a small enterprise pilot.
CSD BR is authorized by the Central Bank of Brazil to provide registration, depository and settlement services and by Brazil’s Securities and Exchange Commission (CVM) to provide registration and depository services.
Its infrastructure holds more than BRL 22 trillion in registered assets and can process millions of transactions within minutes.
However, that does not mean BRL 22 trillion of assets are being tokenized on XRPL.
The current rollout begins only with selected BTG Pactual fund shares. The BRL 22 trillion figure refers to the broader volume of assets registered within CSD BR’s existing infrastructure.
BTG Pactual Fund Shares Are the First Asset Class
BTG Pactual is participating in the first phase by having selected fund shares mirrored on XRPL.
The goal is to test the blockchain layer in live transactions while leaving the current operating process unchanged for investors, issuers and other market participants.
For now, the blockchain record acts as a parallel verification system. If the initial phase performs as intended, later stages could move more functionality onto XRPL.
Future Phases Could Include Native Asset Issuance
Ripple and CSD BR have already outlined possible next steps.
After validating the mirroring model, the partnership plans to explore native asset issuance and trading between authorized participants.
Potential assets for future phases include the following:
- Real Estate Receivables Certificates (CRI)
- Agribusiness Receivables Certificates (CRA)
Both are established segments of Brazil’s fixed-income market.
The project is also expected to add stronger confidentiality tools to meet financial institutions’ privacy requirements.
The longer-term architecture was designed so it could eventually support more asset classes, additional institutions and potentially international markets.
XRPL Is Currently the Only Blockchain in the Stack
According to Ripple executive Luke Judges, XRPL is currently the only blockchain being used in the project’s technology stack.
CSD BR is testing how to integrate a single public blockchain into regulated securities infrastructure while preserving existing legal records and institutional controls.
The broader question is whether that architecture can eventually support more than mirrored records.
If later phases add native issuance and trading, XRPL could shift from an audit layer to part of the transaction infrastructure itself.
The Project Fits Ripple’s Broader Push Into Tokenized Markets
The CSD BR partnership follows a series of moves by Ripple aimed at institutional tokenization.
In August, Ripple announced investments in ZILO and Licuido as part of an effort to expand digital transfer agency, issuance and collateral mobility capabilities around XRPL.
Ripple has also been expanding its presence in Brazil through payments, custody and stablecoin infrastructure. Earlier this year, the company said it planned to apply for a Virtual Asset Service Provider (VASP) license with the Central Bank of Brazil while extending its services to Brazilian financial institutions.
Does This Mean Brazil’s $4 Trillion Securities Market Is Moving to XRPL?
Some reports have framed the partnership around the overall size of Brazil’s securities market or CSD BR’s BRL 22 trillion in registered assets.
The actual first phase is narrower.
Only selected BTG Pactual investment fund shares are being tokenized and mirrored on XRPL. CSD BR’s existing systems remain the official record, and the broader pool of assets registered with the infrastructure provider is not automatically being moved onchain.
The potential scale comes from what the project could expand into if the first phase succeeds.
That is different from saying trillions of dollars in Brazilian securities are already being tokenized.
What Comes Next
The next milestone is validation of the live mirroring phase.
CSD BR and Ripple will test whether XRPL can provide useful gains in transparency, auditability, automation and operational efficiency while existing market processes continue to run normally.
If that phase is successful, the partnership plans to explore native issuance and trading for additional regulated assets, including CRI and CRA instruments.
The project will also need to add more advanced privacy mechanisms before blockchain infrastructure can be used more broadly across institutional markets.
What this means for you: This is not a wholesale move of Brazil’s securities market onto XRPL. The first phase is much more specific: CSD BR is using XRPL to mirror and audit selected BTG Pactual fund records in a live regulated environment. The bigger development will be whether that model later expands into native issuance and trading of Brazilian securities.
