- Ripple and CSD BR have launched an XRPL-based system in a live market environment.
- In phase one, XRPL acts as a record layer, tokenizing CSD BR fund shares.
- Only KYC- and AML-approved institutional clients can take part in the system.
Ripple, in collaboration with Brazilian financial infrastructure firm CSD BR, has moved an XRP Ledger project from testing into a live market environment. Some of BTG Pactual’s (the largest investment bank in Latin America) investment fund ownership records are now being mirrored on the public blockchain.
CSD BR, a government-regulated entity that acts as a registrar, central securities depository, and settlement provider, oversees more than BRL 22 trillion (around $4 trillion) in registered assets. However, this figure does not represent assets being tokenized on XRPL.
In its initial phase, the project is limited to selected BTG Pactual fund shares, while CSD BR’s existing systems remain the official source for ownership, custody, and settlement records.
Phase One
In phase one, XRPL works as an extra layer for record-keeping and auditing. Fund shares already held at CSD BR are turned into tokens on the XRP Ledger using its MPT standard. From there, authorized participants can compare what’s on the blockchain with CSD BR’s official database, which could make reconciliation quicker and easier to verify.
This means that the project isn’t swapping out Brazil’s financial system for a blockchain overnight. CSD BR keeps control of the assets and participants, and the XRPL records act as a secondary source that can be checked and audited almost instantly.
The system is also designed with regulated markets in mind. Only approved corporate and banking clients that pass KYC and AML checks can take part. Additionally, CSD BR maintains the power to freeze assets or reverse transactions when regulators or courts require it.
In the longer term, the project could be even more notable. If the first phase (mirroring records) goes well, Ripple and CSD BR plan to look at issuing and trading assets natively on XRPL.
Future candidates include Brazilian Real Estate Receivables Certificates (CRI) and Agribusiness Receivables Certificates (CRA), which are both big parts of Brazil’s fixed income market.
Related: XRPL Lending Proposal Moves Closer to Mainnet Activation
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