BTG Pactual Acquires Cryptocurrency-Friendly Brokerage Orama in Digital Expansion Move

Expanding Digital Platforms

Major Brazilian investment bank BTG Pactual is set to acquire cryptocurrency-friendly brokerage Orama as part of its strategy to expand its digital platforms. The bank has signed an agreement to purchase 100% of Orama's shares for 500 million Brazilian reais ($98.7 million).

Unlocking Investment Opportunities

The acquisition aims to provide Orama customers with access to the complete BTG platform, according to BTG's digital platforms partner Marcelo Flora. This move is in line with BTG Pactual's digital expansion strategy, offering more investment opportunities to its clients.

Regulatory Approvals Required

The acquisition is still subject to necessary regulatory approvals from authorities, including the central bank of Brazil, as stated in the announcement. Once all regulatory requirements are met, BTG Pactual will proceed with the purchase of Orama.

Cryptocurrency Investment Focus

Launched in 2011, Orama is a well-known brokerage with approximately 18 billion reais ($3.6 billion) of assets under custody and serves approximately 360,000 customers. While primarily focused on distributing investment funds and fixed-income products, Orama has also been exploring cryptocurrency investments.

Successful Digital Asset Fund

Orama's digital asset fund, Block3, has shown promising results over the past year. According to data from Bloomberg, the fund's value has surged over 30% from 90.5 reais ($17.9) in October 2022 to 118.8 reais ($23.5) in September 2023.

New Crypto-Related Products?

It remains uncertain whether the acquisition will result in the launch of new crypto-related products at BTG Pactual. The bank did not respond to a request for comment on the matter.

BTG Pactual's Crypto Ventures

BTG Pactual has been actively involved in the crypto space in recent years. In April 2023, the bank announced plans to launch BTG Dol, a new stablecoin pegged to the United States dollar. They also previously launched a crypto trading app to enable customers to directly invest in cryptocurrencies.

Overall, BTG Pactual's acquisition of Orama reflects its commitment to expanding its digital presence and exploring the opportunities presented by the cryptocurrency industry.