A Brazilian financial-market infrastructure provider has started mirroring ownership records for selected investment fund shares on the XRP Ledger. CSD BR, which manages registration, central securities depository and settlement services, is applying the public blockchain as an additional audit and verification layer for shares in funds managed by BTG Pactual. The operator’s existing database continues to serve as the official record for registration, custody and settlement.

CSD BR oversees more than 22 trillion reais, equivalent to roughly $4 trillion, in registered assets. The initial phase focuses on BTG Pactual investment fund shares deposited with the operator. These shares are being represented as tokens on the XRP Ledger through its Multi-Purpose Token standard. Authorized participants can compare the blockchain records with CSD BR’s official data in near real time.

How the Mirroring Model Operates

CSD BR retains full legal responsibility for ownership records, deposits and settlements. The XRP Ledger functions solely as a secondary, independently verifiable copy. Approved Brazilian corporate and banking clients that have completed know-your-customer and anti-money-laundering checks may access the mirrored data. CSD BR controls participation, can freeze individual assets and can reverse transactions when required by regulatory or judicial orders.

Anyone can observe token movements on the public ledger, yet only authorized parties may hold or transfer the tokens. This structure allows institutions to verify consistency between the two records without altering existing investor or issuer processes. The arrangement operates within Brazil’s current regulatory framework and does not require new approvals for the first phase. Brazil’s central bank and securities regulator have authorized CSD BR to provide registration, depository and settlement services.

The project moves beyond closed proofs of concept or simulated assets. Live fund ownership records are now being copied onto the public ledger while CSD BR’s systems keep the final legal authority.

BTG Pactual Funds Lead the Initial Rollout

BTG Pactual, one of Latin America’s largest investment banks, is supplying the first assets for the live environment. Specific fund names, values or expected transaction volumes for the opening phase have not been disclosed. Participating institutions continue to use their established operational channels.

The tokenized representation on the XRP Ledger is designed to reduce the time and cost of traditional reconciliation. Banks previously compared their internal books against the depository’s records after the fact. The blockchain copy enables direct, near-real-time checks by approved parties.

Next Steps Beyond Record Mirroring

Once the mirroring phase is validated, CSD BR and its technology partner plan to examine native issuance of assets directly on the ledger and trading among authorized institutions. Two fixed-income instruments already under consideration are Real Estate Receivables Certificates and Agribusiness Receivables Certificates, instruments tied to Brazil’s property and agricultural markets. No timeline has been set for those expansions.

Privacy features intended to meet financial-market confidentiality requirements are also under discussion for later stages. The technical design allows for potential expansion beyond Brazilian assets and participants, though no international rollout has been announced.

CSD BR was established in 2018. Its systems already handle positions in securities, derivatives and other financial instruments under regulatory oversight. The current initiative keeps those controls intact while adding a public-ledger verification layer for selected fund records.