CSD BR, a Brazilian operator of regulated registration, securities-depository and settlement systems overseeing more than 22 trillion reais (roughly $4 trillion) in registered assets, has begun recording ownership of selected BTG Pactual investment funds on the public XRP Ledger, according to a release shared with CoinDesk.

The deployment covers funds managed by BTG Pactual, Latin America's largest investment bank. Under the arrangement, CSD BR's existing database remains the official record for registration, custody and settlement. Fund shares deposited with CSD BR will be represented as tokens on XRPL as a secondary record, and the underlying assets are not moving onto the blockchain.

The operational objective is reconciliation. Today, when an investor buys into a fund, the depository updates its records while the banks acting for investors maintain their own books, and the two sides must regularly match them against each other. That process is slow and costly, and a mismatch can hold up a trade. With the blockchain copy, approved banks and companies can read ownership changes directly from the ledger and check them against CSD BR's database at any moment, rather than comparing books after the fact. Every change on XRP Ledger is publicly recorded, including any reversal CSD BR performs, so a divergence between the two records would be visible.

CSD BR's choice of a public blockchain sets the project apart from the private, permissioned networks most banks and depositories have tested. Anyone can read token movements on XRP Ledger, but CSD BR retains control over who may hold and transfer the tokens. Participants must still pass standard identity and anti-money-laundering checks.

The tokens use XRP Ledger's Multi-Purpose Token standard, built for financial assets whose issuers need greater control than native cryptocurrencies such as XRP provide. Through that standard, CSD BR can restrict participation and freeze assets or reverse transactions when required by a regulator or court.

The project also goes beyond typical bank pilots, which for years have relied on test assets or closed networks. CSD BR and Ripple are mirroring live fund ownership records on a public ledger, even though CSD BR's legacy system retains final legal authority.

CSD BR was founded in 2018 and is authorized by both Brazil's central bank, the Banco Central do Brasil, and the country's securities regulator, the Comissão de Valores Mobiliários. Its systems register and maintain positions in securities, derivatives and other financial assets.

The larger structural change is planned for later. Assets issued and traded directly on a blockchain can change hands and settle in seconds, versus the day or more conventional securities trades can take to finalize. CSD BR and Ripple intend to use the mirroring system as a working base: once the operator is satisfied with its performance, the companies plan to test issuing assets directly on XRP Ledger and letting approved participants trade them there.

Future candidates include Brazilian real-estate receivables and agribusiness receivables, two established segments of the country's fixed-income market. The initiative also arrives as Brazil's securities regulator convenes a task force with a 60-day deadline to deliver a tokenization proposal, a timeline that could shape how quickly on-chain issuance moves from pilot infrastructure to regulated market practice.