Brazil’s leading investment bank, BTG Pactual has acquired Orama, a cryptocurrency-friendly brokerage. This is a strategic move to bolster its digital presence. The deal is valued at 500 million Brazilian reais ($98.7 million).
Notably, it marks a significant step in BTG Pactual’s commitment to providing enhanced investment opportunities in the digital space.
Empowering Orama’s Customer Base
Underlining the excitement surrounding the acquisition, Marcelo Flora, BTG’s digital platforms partner, expressed the bank’s eagerness to integrate Orama’s customers into the comprehensive BTG platform. This move further aligns with BTG Pactual’s broader digital expansion strategy. Additionally, it focuses on providing a seamless and extensive suite of services to investors.
Regulatory Hurdles and Approval Process
Notably, the acquisition is contingent on obtaining regulatory approvals from authorities, including the central bank of Brazil. However, the agreement has been inked. The thorough approval process further emphasizes BTG Pactual’s commitment to ensuring compliance and regulatory alignment in the evolving landscape of digital finance.
Orama’s Profile and Cryptocurrency Ventures
Founded in 2011, Orama has positioned itself as a key player with nearly 18 billion reais ($3.6 billion) of assets under custody and a customer base of approximately 360,000. While traditionally focused on the distribution of investment funds and fixed-income products, Orama has ventured into the cryptocurrency space.
In April 2022, Orama Singular, the wealth management arm, launched Block3, an actively managed fund targeting digital assets. This fund has exhibited a remarkable growth trend, recording a surge of over 30% from October 2022 to September 2023.
BTG Pactual’s Ongoing Crypto Initiatives
Beyond the acquisition of Orama, BTG Pactual has been actively engaged in various crypto-related ventures. In April 2023, the bank unveiled plans for BTG Dol, a stablecoin pegged to the United States dollar on a 1:1 ratio, utilizing the bank’s robust custody services. This move follows the successful launch of a crypto trading app that enables customers to directly invest in cryptocurrencies.
The move underscores the bank’s strategic positioning in the dynamic landscape of digital finance. However, the acquisition’s impact on introducing new crypto-related products at BTG Pactual remains uncertain.
As the regulatory processes unfold, BTG Pactual anticipates a seamless integration. This will further amplify its role as a frontrunner in the intersection of traditional finance and emerging digital assets.