What is centralized deposit | B3

What is centralized deposit

The centralized deposit service provided by B3's CSD comprises the central safekeeping of fungible and non-fungible assets, the control of their effective ownership and the administration of the corporate actions related to these assets. In this way, B3´s CSD play a critical role in the protection of assets and help ensure the integrity of assets transactions.

The nature and scope of activities performed by B3´s CSD are:

  • Safety:  The assets under central safekeeping in their physical (but immobilized) form or in dematerialized form (as electronic records) are transferred to B3’s CSD under the fiduciary ownership arrangement. Therefore, as well as providing greater transparency and efficiency across the entire process, each beneficial or direct owner of the asset is known to the B3´s CSD and the issuer, ensuring segregation between the B3´s CSD´s own assets, until they are redeemed, withdrawn from circulation or returned to the holder.
  • Operational credibility: The B3´s CSD is responsible for their integrity and availability, protecting financial assets, securities and treasury bonds placed under its fiduciary ownership against custody risks, associated with the safekeeping and transfers of assets.
  • Convenience: The B3´s CSD administrate all corporate actions related to the deposited assets, thus safeguarding the rights of the asset issuers and holders.
  • Cost reduction: Participants can use proxy vote, by a remote voting tool provided by B3, which enables virtual participation of holders in shareholders meetings and, thus, allows cost reduction with paperwork and representations.