A major project to incorporate XRPL into Brazil’s financial market infrastructure has been unveiled, but XRP instead fell immediately after the announcement.

Ripple is working with Brazilian securities registration and settlement company CSD BR to connect XRPL to the local financial infrastructure, blockchain media outlet The Crypto Basic reported on Oct. 1. It said the first issuance is expected to total about $15 billion by the end of 2026.

The core of the project is not a structure that brings in new funds immediately. It aims to represent existing financial assets in digital form on the blockchain for management and distribution. Ripple executive Luke Jorges said about $15 billion in market value would initially be reflected on XRPL, but drew a line by saying it does not mean $15 billion in cash would immediately enter the network.

The market reaction was lukewarm. XRP fell 3.24 percent over 24 hours, sliding to $1.49 from $1.54. The token price failed to gain despite the major announcement tied to institutional finance.

Flare founder Hugo Philion expressed a view that the market reaction was hard to understand. He said XRP is not his coin, but it looked like lunacy that the price fell the day after such news was disclosed. He also mentioned that a pattern of weak token price performance after major announcements has been repeated at Flare.

The project is already under way. Jorges pointed to a first issuance date before the end of 2026, while saying the actual schedule could change depending on technical requirements and other possible delays. In the first phase, an equity stake in the BTG Pactual fund will be the initial target, and it will later expand to other areas of Brazil’s financial market. Future phases are expected to include parts of the fixed income market, such as bonds.

CSD BR’s role in the project is significant. CSD BR registers and settles securities, and its registered assets total 22 trillion Brazilian reals, or about 5,730.98 trillion won. Ripple explained that this is the first case of XRPL being incorporated into a financial infrastructure of this scale.

Support for financial applications and interoperability with existing regulatory frameworks were cited as reasons CSD BR chose XRPL. That creates the possibility for XRPL to expand beyond simple transactions and speculation into a role of representing and managing financial assets within regulated markets. Assets currently on XRPL total about $6.3 billion.

If the project proceeds through subsequent phases, the range of assets managed and distributed within XRPL could broaden, and financial activity could also increase. Ripple sees wider institutional use as potentially having a meaningful long-term impact on demand for XRP, but the market does not appear to be reflecting such expectations.

XRP isn’t “my” coin but I can’t help but point out the lunacy (because FLR suffers from the same lacklustre response sometimes) that XRP is down on the day after the revealing of something that is so potentially transformative. It doesn’t make sense. https://t.co/VhguqepdCw