Ripple and CSD BR Bring Brazil’s Securities Market Onchain Through XRP Ledger
Ripple has partnered with Brazilian financial market infrastructure provider CSD BR to introduce the XRP Ledger (XRPL) into the country’s regulated securities market. Announced on September 29, 2026, the initiative will initially use the public blockchain to mirror securities ownership records, starting with investment fund shares from BTG Pactual. The project marks a move from controlled tokenization testing toward live operations within an established financial market, while keeping the official ownership records and settlement responsibilities with CSD BR.
The partnership introduces a new use case for XRP Ledger in traditional finance, allowing authorized financial institutions to access blockchain-based records for transparency, auditing and verification. CSD BR will combine its existing infrastructure with Ripple’s custody technology and XRPL’s tokenization capabilities. The initial phase will not replace existing registration or settlement processes, but will assess how blockchain can complement them under Brazil’s current regulatory framework.
XRP Ledger Begins Recording Brazilian Securities Ownership
CSD BR will use the XRP Ledger as an additional layer for recording and auditing financial assets, beginning with BTG Pactual investment fund shares deposited within its infrastructure. The assets will be tokenized using the XRPL’s Multi-Purpose Token (MPT) standard, creating blockchain representations of securities ownership that authorized participants can inspect and verify. CSD BR will continue to maintain the official records, ensuring that the blockchain serves as a complementary source for transparency rather than replacing the existing securities depository.
The initiative is significant because CSD BR is an authorized central securities depository and settlement infrastructure provider. According to the announcement, the company has more than BRL 22 trillion in registered assets and can process millions of transactions within minutes. Integrating a public blockchain into this environment provides an opportunity to evaluate distributed ledger technology under real operating conditions, including its ability to improve record traceability, auditing and data accessibility.
Ripple’s custody infrastructure will support the safekeeping and administration of the tokenized assets, while the XRP Ledger will provide the underlying blockchain functionality.
Related: American Airlines Uses Ripple Treasury to Manage Global Cash, Debt and FX Risk
The system will operate in a permissioned environment, restricting participation to eligible corporate and banking clients in Brazil that meet Know Your Customer (KYC) and anti-money laundering (AML) requirements. This approach combines a public blockchain’s shared ledger architecture with access controls designed for regulated financial operations.
CSD BR will retain control over asset issuance, administration and key compliance functions. These include authorizing participants, freezing individual assets and reversing transactions through clawback mechanisms when required by regulatory or judicial orders. Maintaining these controls allows the project to introduce blockchain-based record mirroring without transferring the legal responsibilities of the securities infrastructure to the blockchain itself.
Daniel Polano Spreafico, CSD BR’s Head of Products and Clients, said the project would begin with record mirroring to introduce the technology without disrupting existing processes for investors, issuers or market participants. The initial phase is intended to establish how the system performs in a live environment before the partners consider expanding its role. Ripple’s Latin America Managing Director, Silvio Pegado, described the initiative as a step toward incorporating distributed ledger technology into critical financial infrastructure beyond pilots and proofs of concept.
Ripple Targets Tokenized Assets and Broader Financial Market Adoption
The partnership’s next phase could expand blockchain-based infrastructure beyond ownership record mirroring. Once the initial implementation has been validated, CSD BR and Ripple plan to explore native asset issuance and trading among authorized participants. Real Estate Receivables Certificates (CRI) and Agribusiness Receivables Certificates (CRA) are among the asset classes being considered, extending the potential application of XRPL into important segments of Brazil’s fixed-income market.
The proposed expansion could change how certain financial assets are issued, tracked and transferred between institutions. Native issuance would allow eligible assets to be created directly on the blockchain rather than represented by mirrored records. Trading among authorized participants could also introduce additional opportunities for automation and more efficient transaction processing, although these capabilities remain part of the planned development rather than the initial deployment.
Privacy is another key consideration as the project progresses. Financial institutions require mechanisms to protect commercially sensitive information and comply with regulatory obligations. Ripple and CSD BR intend to introduce advanced confidentiality features as the platform evolves, while retaining the access controls and governance mechanisms required for regulated markets.
Related: From XRP Trials to Digital Custody: How Barclays and HSBC Connect to Ripple
The ability to balance blockchain transparency with financial privacy will be an important factor in determining how widely the infrastructure can be applied.
BTG Pactual is participating in the first phase by providing investment fund shares for the tokenization initiative. Luis Furtado, the bank’s partner responsible for market infrastructure, said the project offers an opportunity to apply blockchain technology to the fund market through live transactions while preserving existing processes and official ownership records. The bank’s involvement gives the initiative a practical financial asset use case as the partners evaluate the technology’s performance.
For XRP Ledger, the agreement provides an additional institutional application in a regulated national capital market. Rather than immediately replacing existing securities infrastructure, the project establishes a blockchain-based layer that can be tested alongside established systems. Its longer-term development will depend on the results of the initial implementation, regulatory requirements, privacy capabilities and demand from financial institutions. If the planned phases proceed, the partnership could extend XRPL’s role from recording mirrored securities ownership to supporting the issuance and trading of tokenized Brazilian financial assets.
About The Author
