XRP Ledger starts carrying fund records from Brazil operator overseeing $4 trillion
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Brazilian financial-market operator CSD BR has started recording ownership information for selected BTG Pactual investment funds on the public XRP Ledger. CSD BR continues to maintain the official database for registration, custody, and settlement, while the blockchain copy allows approved institutions to verify ownership changes in real time. This dual system aims to reduce the slow and costly reconciliation process without losing regulatory oversight.
Why it matters
Using the XRP Ledger enables faster, real-time verification of fund ownership, potentially streamlining the traditionally slow and expensive reconciliation process in securities markets. The development could pave the way for issuing and trading assets such as real-estate and agribusiness receivables directly on a public blockchain. The source highlights that real fund ownership records on a public blockchain represent a step beyond previous pilot projects.
Key context
CSD BR was founded in 2018 and is authorized by Brazil's central bank and securities regulator, managing registrations for securities, derivatives, and other financial assets. Traditional reconciliation involves comparing records between banks and the depository and can delay trades if discrepancies occur. The XRP Ledger’s Multi-Purpose Token standard enables CSD BR to control ownership and transfer permissions while using a public blockchain visible to all.
Key numbers and entities
CSD BR oversees approximately 22 trillion reais (about $4 trillion) of registered assets. BTG Pactual is identified as Latin America's largest investment bank. The blockchain records fund shares from selected BTG Pactual investment funds on XRP Ledger.
What remains unclear
The source does not specify the timeline for when CSD BR and Ripple will begin issuing and trading assets directly on the XRP Ledger beyond the initial mirroring of fund records. It also does not detail how widespread adoption among banks and other institutions will be or the potential regulatory challenges of expanding blockchain use in Brazil’s financial markets.