Ripple and CSD BR Launch Regulated Asset Tokenization on XRP Ledger in Brazil

CSD BR has partnered with Ripple to integrate the XRP Ledger into Brazil’s regulated financial market infrastructure. By mirroring BTG Pactual investment fund shares on a public blockchain while maintaining official records on traditional systems, the initiative provides a blueprint for how national central securities depositories can adopt decentralized technology without compromising existing legal frameworks.

What was announced

CSD BR, a Brazilian financial market infrastructure authorized to operate as a registrar and settlement system, has launched a strategic partnership with Ripple to integrate the XRP Ledger (XRPL) into its operations. In this initial phase, the XRPL will serve as a complementary layer for recording and auditing financial assets, specifically starting with investment fund shares from BTG Pactual. While CSD BR’s internal systems remain the official source of record for registration and settlement, the public blockchain will mirror these records to enhance transparency and traceability.

The project utilizes the Multi-Purpose Token (MPT) standard on the XRPL to tokenize the fund shares. This architecture is designed to operate within a permissioned environment, restricted to corporate and banking clients in Brazil who are subject to standard Know Your Customer (KYC) and anti-money laundering (AML) procedures. CSD BR maintains full governance over the assets, including the ability to freeze assets or reverse transactions via clawback mechanisms if required by judicial order.

Operating a scalable infrastructure that already processes millions of transactions, CSD BR currently manages more than BRL 22 trillion in registered assets. This initiative allows the firm to evaluate blockchain performance under real operating conditions without altering the legal responsibilities of market participants. Future phases of the partnership envision expanding the use of the ledger to include native asset issuance and trading for Real Estate Receivables Certificates (CRI) and Agribusiness Receivables Certificates (CRA), which are significant segments of Brazil's fixed income market.

"Moving beyond pilots and proofs of concept to a live record-keeping infrastructure in a national capital market is a major milestone for the industry. This partnership shows how distributed ledger technology can be safely incorporated into critical financial infrastructure in a regulated way,"

Silvio Pegado, Managing Director of Ripple for Latin America.

The companies involved

Ripple is a provider of blockchain and crypto solutions for traditional and digital finance, known for its focus on cross-border payments and institutional-grade custody. The company has established a significant presence in the global financial sector, frequently collaborating with banking institutions to integrate distributed ledger technology into existing payment and settlement rails. It operates globally with a dedicated leadership team for the Latin American region.

CSD BR operates as a critical piece of financial market infrastructure in Brazil. As an authorized registrar, central securities depository, and settlement system, it provides the regulatory and technical framework necessary for the secure management of securities. The organization handles high-volume transaction processing for the Brazilian market, positioning itself as a bridge between traditional financial regulation and emerging digital asset technologies.

BTG Pactual is a major financial institution involved in this initiative as the issuer of the fund shares being mirrored. The bank maintains a significant presence in the Latin American investment landscape and has been an active participant in the evolution of market infrastructure. By participating in this project, the bank facilitates the application of blockchain technology to the fund market within a regulated framework, ensuring that official records remain secure while exploring the efficiencies of on-chain transparency.

What FF News has reported before

FF News has extensively tracked Ripple’s expansion into diverse financial and branding sectors. Recently, the company moved into sports marketing, with Ripple Scores Multi-Year Branding Partnership with Louisville Basketball for XRP. In the infrastructure space, Ripple participated in a $10 million Series A extension for Velocity, as reported in Velocity Secures $10M Series A Extension from Visa and Ripple to Scale Stablecoin Infrastructure.

The firm has also focused on enhancing its enterprise tools, notably when Ripple Treasury Expands GSmart AI to Bridge Governance Gap in Enterprise Financial Management. On the institutional banking front, FF News covered the firm’s progress in Europe when Ripple Payments Sees first European Bank Adoption with AMINA Bank. These developments highlight a broader trend of Ripple moving from a pure payment network to a comprehensive provider of institutional financial technology.

What this means

This partnership represents a shift in the tokenization narrative from experimental "sandboxes" to live, regulated infrastructure. By using the XRP Ledger as a mirror rather than a primary ledger, CSD BR has found a way to bypass the regulatory hurdles that often stall blockchain adoption in capital markets. This approach puts pressure on other regional depositories to prove their systems can offer similar levels of real-time transparency. However, the reliance on a permissioned public ledger raises questions about the long-term balance between decentralization and the strict control required by central banks. It remains to be seen if this hybrid model becomes the global standard for sovereign asset registration.