Ripple and Brazilian financial infrastructure provider CSD BR are bringing securities ownership records onto the XRP Ledger, beginning with investment fund shares from BTG Pactual. The initiative introduces public blockchain technology into Brazil's regulated capital markets, giving authorized participants the ability to query and audit records. Under the arrangement, CSD BR will retain the official securities records and continue managing registration, deposits, and settlement — a structure that keeps legal ownership with a regulated depository while testing what a shared ledger can add to transparency.

Blockchain Layer Added to Depository Infrastructure

CSD BR said the XRP Ledger will serve as an additional layer for recording, auditing, and transparency during the partnership's first phase, complementing rather than replacing the company's official registry. That division of roles is central to how the project fits regulated markets: the authorized depository's registry remains the definitive record, while the blockchain provides a parallel, inspectable trail for vetted participants. The firm operates as a registrar, central securities depository, and settlement system under regulatory authorization, and it manages more than BRL 22 trillion in registered assets. According to the announcement, CSD BR also processes millions of transactions within minutes.

Through live transactions, the project will assess the blockchain's transparency, traceability, automation, and efficiency. The initiative runs within Brazil's existing regulatory framework: it does not change participants' legal responsibilities and does not require additional regulatory approvals, the companies said, allowing the trial to proceed under rules participants already follow.

Ripple Custody Supports Tokenized Fund Shares

The first phase will tokenize BTG Pactual investment fund shares deposited at CSD BR, using the XRP Ledger's Multi-Purpose Token standard, the ledger's tokenization framework for real-world assets. Ripple Custody will support the process, with the blockchain providing a complementary record for authorized participants.

Access will remain restricted to corporate and banking clients in Brazil that meet Know Your Customer and anti-money laundering requirements. CSD BR will retain control over issuance, administration, and participant authorization. The infrastructure also preserves the depository's ability to freeze individual assets or reverse transactions when required by judicial or regulatory orders, keeping intervention powers with the regulated entity even as records gain a public-ledger layer.

Daniel Polano Spreafico, CSD BR's Head of Products and Clients, said the initial phase keeps existing processes unchanged while the technology is tested under live conditions.

Partnership Eyes Wider Asset Tokenization

Silvio Pegado, Ripple's Managing Director for Latin America, described the project as a move from pilot testing to live recordkeeping infrastructure. Luis Furtado, a Partner at BTG Pactual, said the initiative provides a foundation for further blockchain applications in fund markets.

Following validation, the partners plan to explore native asset issuance and trading among authorized participants. Potential assets include Real Estate Receivables Certificates and Agribusiness Receivables Certificates. The next stages may also introduce advanced confidentiality mechanisms to address financial-market privacy requirements, and the model could eventually accommodate additional asset classes, more participants, and international markets. The near-term markers to watch are the outcomes of the live-transaction evaluation and how those confidentiality features develop, both of which the partners have placed in the next stages of the roadmap.

Primary source: Ripple press release. Via Cryptofrontnews.