Brazilian financial market infrastructure firm CSD BR is linking the XRP Ledger to regulated securities infrastructure.

On Sept. 29 local time, blockchain media outlet U.Today reported that the integration will begin by using the XRP Ledger as an additional recordkeeping and audit layer for investment fund units.

The initial assets to be applied are investment fund units from Brazil's large bank BTG Pactual. The units are currently deposited at CSD BR, and the project is being pursued in a structure that connects the XRP Ledger within the existing regulated capital market infrastructure.

CSD BR is an operator responsible for part of Brazil's regulated financial market infrastructure. It provides asset registration and central depository functions, and it has been authorised by major financial regulators including Brazil's central bank. A key point is that the integration goes beyond blockchain-based experiments and is being applied to national-level capital market infrastructure.

Ripple executive Luke Judd (루크 저지스) said, "This is the first time the XRP Ledger has been publicly integrated into core financial market infrastructure of this scale." He also said the scale of the partnership should not be underestimated, as assets registered with CSD BR exceed 22 trillion Brazilian reais.

Silvio Pegado (실비오 페가도), Ripple's head for Latin America, said the shift from a pilot project to operational infrastructure is an important milestone for the distributed ledger industry. He emphasised that the project is not at the level of a simple proof of concept.

From a market perspective, attention is on the possibility of expanding into Brazil's fixed income market. Judd said the project could open a path to moving a significant portion of Brazil's large fixed income market onto the XRP Ledger. He also mentioned that Brazil is a market with an economy ranked in the world's top 10.

The reasons for the technology choice were also clearly set out. Judd cited that CSD BR chose the XRP Ledger because it was designed for financial use cases and can be integrated immediately with existing regulated infrastructure. CSD BR did not add the XRP Ledger as part of an experiment to adopt multiple chains in parallel, but adopted it as the only blockchain in its current technology stack. Judd said the only blockchain in the current stack is the XRP Ledger.

As a result, the integration is expected to be recorded as the first case in which the XRP Ledger takes on an actual recordkeeping and audit infrastructure role within Brazil's regulated capital market. The next points to watch are whether the assets applied will expand beyond BTG Pactual's fund units and whether it will connect to Brazil's fixed income market.