CSD BR starts mirroring fund shares on XRP Ledger

Brazilian market operator CSD BR has begun mirroring ownership records for selected BTG Pactual investment fund shares on the XRP Ledger, adding a blockchain record while its own system remains the official record. In a Sept. 29 announcement from CSD BR and Ripple, the companies said the first phase is live with fund shares deposited at CSD BR.

CSD BR has more than 22 trillion Brazilian reais in registered assets, roughly $4 trillion, according to CoinDesk’s report on the launch. The figure covers assets registered with the operator; the announcement does not say that all of those assets are being put on the ledger. The project starts with shares in funds run by BTG Pactual.

What will the XRP Ledger record?

The ledger will hold a second record of ownership for the selected fund shares. CSD BR and Ripple say the shares will be represented as tokens using the ledger’s Multi-Purpose Token standard, a format for digital assets. CSD BR’s systems will still handle the official registration, deposit and settlement. The blockchain copy is intended to let approved participants query and audit records and check that they match, in near real time.

The arrangement does not move the assets’ official record to the XRP Ledger. It gives the project a live setting to assess whether the blockchain can improve transparency, traceability, automation and efficiency, the companies said. CSD BR’s head of products and clients, Daniel Polano Spreafico, said current processes would remain unchanged in this phase.

Who can access and control the token records?

The system is restricted to corporate and banking clients in Brazil who meet identity and anti-money-laundering checks, according to the announcement. The token movements are recorded on a public blockchain, but CSD BR controls who can hold and transfer the tokens, CoinDesk reported.

CSD BR will also retain control of issuance and administration. It can authorize participants, freeze individual assets and reverse transactions when ordered by a regulator or court, the companies said. Those controls leave legal responsibilities and the official record with the operator.

What could the partnership add next?

After the record-mirroring phase is validated, CSD BR and Ripple plan to consider issuing assets directly on the ledger and allowing authorized participants to trade them, their announcement said. Possible candidates include Brazilian real estate receivables and agribusiness receivables. These are future steps under consideration; the announcement does not say they are live.