Brazilian financial-market infrastructure provider CSD BR has moved to integrate the XRP Ledger into its regulated securities infrastructure, according to a local media outlet.
The Ripple-led initiative will initially use the XRP Ledger as an additional record and audit layer for investment fund shares held at CSD BR. The first assets involved will be fund shares from Brazilian banking giant BTG Pactual.
According to Ripple executive Luke Judges, the project could open a path for significant portions of Brazil’s massive fixed-income market to move onto the XRP Ledger.
“This is the first time the XRP Ledger is publicly being integrated into core financial market infrastructure of this scale,” Judges said.
Regulated market infrastructure
CSD BR forms part of Brazil’s regulated financial-market infrastructure. Its services cover asset registration, central securities depository functions and so on.
The company is authorized by major Brazilian financial regulators, including the Central Bank of Brazil.
Judges described Brazil as the world’s 10th-largest economy and said CSD BR has more than BRL 22 trillion worth of registered assets. Hence, the sheer scale of the tie-up should not be underestimated.
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The XRP Ledger is being connected to infrastructure that already sits inside Brazil’s regulated capital markets.
The rollout will begin with investment fund shares from BTG Pactual that are deposited with CSD BR.
The CSD BR project is intended to move beyond the familiar proof-of-concept model.
Ripple Latin America Managing Director Silvio Pegado described the transition from pilots into live national capital-market infrastructure as an important milestone for the broader distributed-ledger industry.
According to Judges, CSD BR selected the XRP Ledger because the network was designed around financial applications.
“CSD BR chose the XRPL because it was purpose-built for financial use cases and can integrate with existing regulated infrastructure out of the box,” he said.
XRPL is not being deployed as one network within a large multichain experiment. According to Judges, it is currently the sole blockchain included in the technology stack.
“Today, XRPL is the only blockchain in the stack,” he said.
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