Brazil's CSD BR Joins Forces with Ripple to Bring Distributed Ledger Tech to Regulated Markets
The Central Securities Depository of Brazil (CSD BR) has begun phase one of its collaboration with Ripple, adopting distributed ledger technology to replicate records of fund ownership on the XRP Ledger. The CSD BR manages assets worth over BRL 22 trillion and started the partnership on September 29, focusing initially on BTG Pactual Investment Bank's fund shares.
The XRP Ledger will serve as an extra layer for verification of ownership data in real-time, not replacing the existing systems at CSD BR. This marks a transition from blockchain experimentation to its application in regulated capital markets. The project involves creating a virtual tokenized version of selected fund shares on the blockchain while retaining the current CSD BR system as the trusted register.
Ripple will offer infrastructure for custody services, while CSD BR continues to run the regulated market. This arrangement enables the XRP Ledger to provide blockchain-powered transparency without compelling investors and issuers to alter their systems immediately.