Ripple brings XRP Ledger into Brazil’s R$22 trillion financial infrastructure, starting with BTG Pactual fund shares

Ripple and CSD BR, the operator behind more than R$22 trillion in registered Brazilian financial assets, are testing whether the XRP Ledger can mirror ownership records for investment funds, starting with shares from BTG Pactual, without replacing CSD BR’s official registry.

XRP Ledger enters Brazil’s $22 trillion financial infrastructure

The partnership introduces the XRP Ledger into an established financial market infrastructure responsible for registering securities, maintaining ownership records and facilitating settlements.

CSD BR, which operates under authorization from Brazil’s Central Bank and securities regulator, the Brazilian Securities and Exchange Commission (CVM), will initially use the blockchain to create digital representations of existing investment fund shares.

The first phase will cover funds from BTG Pactual, one of Brazil’s major investment banks. The shares will remain registered within CSD BR’s existing systems, ensuring that the blockchain does not replace the legally recognized ownership records.

According to the companies, CSD BR manages more than BRL 22 trillion in registered assets and can process millions of transactions within minutes. Integrating blockchain into this infrastructure will allow the partners to evaluate its performance under actual market conditions rather than relying exclusively on controlled demonstrations.

Daniel Polano Spreafico, CSD BR’s head of products and clients, explained the decision to begin with mirrored records.

“We chose to start with record mirroring because it is the safest and most responsible way to introduce a new technology into critical market infrastructure,” he said.

The initial arrangement will leave existing procedures for investors and financial institutions unchanged while providing an additional method of checking ownership information.

Ripple uses token standards to maintain financial controls

The project will use the XRP Ledger’s Multi-Purpose Token (MPT) standard to represent BTG Pactual’s investment fund shares digitally.

Unlike basic digital tokens, MPTs support configurable features designed for financial applications, including restrictions on eligible holders and mechanisms for freezing or recovering assets.

These capabilities will allow CSD BR to maintain institutional oversight while testing blockchain-based asset management. Participation will be limited to approved corporate and banking institutions that complete identity verification and anti-money laundering checks.

CSD BR will retain responsibility for issuing and administering the tokens, authorizing participants and enforcing applicable restrictions. It will also have the ability to recover tokens when required by regulatory or judicial orders.

Ripple will provide blockchain and digital asset custody infrastructure to support the initiative. The arrangement combines the XRP Ledger’s tokenization capabilities with institutional custody services designed to secure digital assets.

Importantly, the project will operate within Brazil’s existing regulatory framework. The companies say it will not change participants’ legal obligations or require additional regulatory approvals.

Authorized institutions will be able to compare blockchain records with CSD BR’s official database in near real time. This could help identify inconsistencies and improve the auditing of financial assets.

However, the initial phase does not transfer legal ownership records to the blockchain. Instead, it tests whether a public network can complement an established securities depository.

Brazil’s tokenization plans extend beyond investment funds

The partnership forms part of a broader expansion of institutional blockchain activity in Brazil, where financial companies are exploring tokenization across several asset classes.

CSD BR’s initiative follows developments involving VERT, a Brazilian financial services company that structures credit securities and manages investment funds. In July 2025, VERT launched a private credit platform using the XRP Ledger, initially recording a BRL 700 million agribusiness receivables certificate.

Digital asset platform Mercado Bitcoin has also announced plans to tokenize more than $200 million in financial assets, including fixed-income and equity-income instruments.

Against this backdrop, the CSD BR partnership could extend blockchain applications into additional areas of Brazil’s capital markets.

If the initial phase meets its operational objectives, subsequent stages could introduce native issuance, allowing financial instruments to be created directly on the blockchain. The companies are also considering trading between authorized participants.

Potential assets include real estate receivables certificates, known as CRI, and agribusiness receivables certificates, or CRA. Both are established Brazilian financial instruments backed by payments associated with their respective sectors.

Luis Furtado, BTG Pactual’s partner responsible for market infrastructure, described the initiative as an opportunity to apply blockchain technology to investment funds through regulated infrastructure and real transactions.

CSD BR is also considering advanced confidentiality mechanisms to address financial institutions’ privacy requirements. Future expansion could include additional asset classes, more institutional participants and international markets.

For Ripple, the agreement provides another opportunity to extend the XRP Ledger beyond cryptocurrency transactions and into traditional financial markets.

Nevertheless, the project’s immediate focus remains on validating the technology within Brazil’s existing securities infrastructure. Its eventual expansion will depend on the results of the initial implementation and the ability to meet institutional, operational and regulatory requirements.