Brazilian market infrastructure operator CSD BR, a licensed central securities depository, has begun mirroring ownership records for selected investment funds managed by Brazilian investment bank BTG Pactual on the XRP Ledger, marking an expansion of blockchain use within the country's regulated capital markets, according to a report.

CSD BR, which oversees roughly $4 trillion in registered assets across its broader registry, is using the public blockchain as a secondary copy of ownership information rather than transferring the underlying assets away from its existing infrastructure. Central securities depositories hold a foundational role in capital markets: they maintain the official registers that establish which investors hold which securities, the function that underpins registration, custody and settlement. The initiative was developed with Ripple and is designed to test whether blockchain technology can improve the speed and transparency of record verification without replacing established systems.

Under the arrangement, CSD BR is using the XRP Ledger to create a near-real-time secondary record of ownership for selected BTG Pactual fund shares, while retaining its existing database as the official legal record for registration, custody and settlement.

The structure reflects a cautious approach to blockchain adoption in financial-market infrastructure. CSD BR's own database continues to serve as the authoritative record, while the blockchain provides an additional version that approved institutions can consult. This allows participants to compare records without requiring the depository to migrate its core registry to a public blockchain, keeping critical market functions under existing oversight.

Tokenized records remain separate from underlying assets

The selected fund shares are represented on the XRP Ledger as tokens under CSD BR's Multi-Purpose Token standard. The tokens reflect ownership records but do not represent the movement of the registered assets themselves onto the blockchain.

Approved banks and corporate clients can compare the blockchain-based information with CSD BR's internal database in near real time. In conventional securities processing, that comparison typically happens only after transactions have settled, when institutions reconcile their internal books against the depository's records and resolve any mismatches. The system is intended to reduce the need for institutions to reconcile their own records after transactions have occurred, potentially improving operational efficiency.

The safeguards surrounding the system are designed to preserve CSD BR's existing regulatory responsibilities. The depository can continue to freeze assets or reverse transactions when required by a court or regulator. Participation is restricted to vetted Brazilian banking and corporate clients rather than being opened broadly to the public — separating the public nature of the underlying network from participation in the system itself.

The roughly $4 trillion figure associated with CSD BR refers to the entire pool of assets registered through its infrastructure and does not represent the value of the fund shares currently being mirrored on the XRP Ledger.

Blockchain testing moves toward new asset classes

CSD BR and Ripple plan to evaluate additional applications once the initial mirroring phase has been validated. The next stage is expected to involve testing the native issuance and trading of receivables linked to real estate and agribusiness.

The planned second phase would move beyond mirroring existing ownership records by testing assets that are issued directly on a blockchain, potentially enabling settlement in seconds rather than the day or longer associated with some conventional securities transactions.

“A licensed central securities depository is recording securities ownership on a public blockchain for the first time — on the X Ledger. CSD BR is partnering with Ripple to bring Brazil's regulated capital markets onchain, starting with BTG Pactual fund shares, secured by…”

— Ripple (@Ripple) September 30, 2026

The distinction between mirroring and native issuance is significant. Under the current arrangement, CSD BR maintains the legal ownership record and uses the blockchain as a synchronized secondary reference. Native issuance would instead create the financial asset directly within blockchain infrastructure, potentially allowing issuance, trading and settlement to operate through a more integrated digital process.

According to the report, CSD BR selected the mirroring model as a way to introduce new technology while maintaining control over critical market infrastructure. Ripple described the transition from blockchain pilots to live recordkeeping within a national capital market as a significant development for institutional adoption, and said the initiative represented the first instance of a licensed depository using a public blockchain in this manner.

The project comes as financial institutions and market operators examine blockchain applications beyond cryptocurrency trading. For regulated markets, the focus has increasingly shifted toward securities administration, settlement, asset issuance and recordkeeping.

By combining CSD BR's established legal and settlement infrastructure with a public blockchain-based secondary record, the project is testing whether distributed-ledger technology can improve verification and settlement without requiring an immediate replacement of existing market systems.

If the initial implementation is validated, the planned testing of real estate and agribusiness receivables could provide a broader assessment of blockchain-based issuance in Brazil's capital markets. The results could also help determine how public blockchain infrastructure can be incorporated into regulated financial systems while preserving existing legal, regulatory and operational controls.