Key Takeaways
- • CSD BR, Brazil's central securities depository managing ~$4 trillion in registered assets, has begun mirroring BTG Pactual investment fund ownership records on the XRP Ledger as an additional audit and reconciliation layer, announced September 29, 2026.
- • The Multi-Purpose Token (MPT) standard is used to represent fund units on XRPL, while CSD BR remains the official registry for custody, settlement, and asset administration—establishing a dual-layer infrastructure model without requiring new regulatory approvals.
- • Access is restricted to corporate and banking clients meeting Brazil's customer identity verification and anti-money laundering requirements; CSD BR retains full control over asset issuance, participant restrictions, asset freezes, and transaction reversals per regulatory or court orders.
- • The initial phase maintains unchanged processes for investors, issuers, and market participants, with testing focused on technology performance under live operational conditions rather than broader tokenization or settlement redesign.
- • This partnership represents the first regulated securities record-mirroring deployment on a public blockchain by a major Latin American financial infrastructure operator, positioning Brazil as an early adopter of distributed ledger technology in regulated capital markets.
Summary
CSD BR, Brazil's financial market infrastructure operator, has launched a pilot program with Ripple to mirror ownership records of BTG Pactual investment fund units on the XRP Ledger. The announcement, made on September 29, 2026, marks a significant integration of distributed ledger technology within a regulated securities environment. CSD BR manages approximately $4 trillion in registered assets across its infrastructure, though this figure represents total assets under administration rather than assets transferred to the blockchain. The mirroring initiative begins with BTG Pactual fund shares, Latin America's largest investment bank by assets.
The technical architecture reflects a conservative, layered approach to blockchain adoption. BTG Pactual investment fund units stored at CSD BR are represented on the XRP Ledger using the Multi-Purpose Token standard, functioning as an additional recording and audit layer. Critically, CSD BR's centralized system remains the official record for asset registration, custody, and settlement. The XRP Ledger serves as a supplementary reconciliation tool that allows licensed institutions to compare ownership records in near real-time without displacing existing legal and operational frameworks. According to Ripple, the structure was developed within existing regulatory guidelines, requiring no new regulatory approvals for the initial phase.
Access to the system is limited to corporate and banking clients in Brazil who satisfy customer identity verification and anti-money laundering requirements. CSD BR maintains complete control over the infrastructure, including authority to issue and administer assets, restrict participants, freeze specific holdings, or reverse transactions when required by regulators or courts. Daniel Polano Spreafico, CSD BR's Head of Product and Clients, stated that the organization "chose to start with record mirroring because it is the safest and most responsible way to introduce new technology." The initial phase preserves all existing investor, issuer, and market participant workflows; testing currently focuses on technology performance under actual operational conditions rather than operational redesign or settlement innovation.
This deployment positions Brazil's regulated securities infrastructure ahead of most developed markets in adopting blockchain-native record-keeping at scale. By maintaining regulatory primacy while leveraging distributed ledger verification, CSD BR has created a model that addresses institutional investors' concerns regarding auditability and transparency without disrupting legal custody chains or settlement responsibilities.
The technical architecture reflects a conservative, layered approach to blockchain adoption. BTG Pactual investment fund units stored at CSD BR are represented on the XRP Ledger using the Multi-Purpose Token standard, functioning as an additional recording and audit layer. Critically, CSD BR's centralized system remains the official record for asset registration, custody, and settlement. The XRP Ledger serves as a supplementary reconciliation tool that allows licensed institutions to compare ownership records in near real-time without displacing existing legal and operational frameworks. According to Ripple, the structure was developed within existing regulatory guidelines, requiring no new regulatory approvals for the initial phase.
Access to the system is limited to corporate and banking clients in Brazil who satisfy customer identity verification and anti-money laundering requirements. CSD BR maintains complete control over the infrastructure, including authority to issue and administer assets, restrict participants, freeze specific holdings, or reverse transactions when required by regulators or courts. Daniel Polano Spreafico, CSD BR's Head of Product and Clients, stated that the organization "chose to start with record mirroring because it is the safest and most responsible way to introduce new technology." The initial phase preserves all existing investor, issuer, and market participant workflows; testing currently focuses on technology performance under actual operational conditions rather than operational redesign or settlement innovation.
This deployment positions Brazil's regulated securities infrastructure ahead of most developed markets in adopting blockchain-native record-keeping at scale. By maintaining regulatory primacy while leveraging distributed ledger verification, CSD BR has created a model that addresses institutional investors' concerns regarding auditability and transparency without disrupting legal custody chains or settlement responsibilities.
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