XRP Ledger starts carrying fund records from Brazil operator overseeing $4 trillion
Brazil's CSD BR is utilizing the XRP Ledger to create a public, transparent record of investment fund shares, aiming to streamline the reconciliation process between banks and depositories. While the official records remain in CSD BR's private database, the blockchain acts as a secondary, verifiable ledger for tokenized fund shares.
Why it matters
This represents a significant real-world application of public blockchain technology in traditional finance to improve transparency and reduce settlement friction.
CSD BR, which operates regulated registration, securities-depository and settlement systems in Brazil, will use the public blockchain as a second record of who owns shares in selected BTG Pactual investment funds, per a release shared with CoinDesk.
A depository keeps the official list of who owns which securities. When an investor buys into a fund, the depository updates its records, while the banks acting for investors keep books of their own and regularly check them against the depository's to make sure the two agree.
That matching work, known as reconciliation, is slow and costly, and a mismatch can hold up a trade.
The existing CSD BR database remains the official record used for registration, custody and settlement, and the assets registered with CSD BR are not being moved onto XRP Ledger. Fund shares deposited with CSD BR will be represented as tokens on XRPL as well.
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