Brazilian investment bank BTG Pactual is making a significant move in the cryptocurrency space with its acquisition of cryptocurrency-friendly brokerage Orama. The bank has signed an agreement to acquire 100% of Orama’s shares for 500 million Brazilian reais ($98.7 million). This acquisition is part of BTG Pactual’s digital expansion strategy and aims to provide Orama customers with access to the complete BTG platform.
Orama, founded in 2011, is known for its distribution of investment funds and fixed-income products. With nearly 18 billion reais ($3.6 billion) of assets under custody, the brokerage services approximately 360,000 customers. In recent years, Orama has also ventured into cryptocurrency investment. In April 2022, it launched an actively managed fund called Block3, which focuses on digital assets. The fund offers exposure to various crypto assets, including Bitcoin (BTC), tokens, derivatives, and more.
The Block3 fund has shown promising performance, surging more than 30% from 90.5 reais ($17.9) in October 2022 to 118.8 reais ($23.5) in September 2023. This success likely played a role in BTG Pactual’s decision to acquire Orama.
While it remains unclear whether this acquisition will result in new crypto-related products at BTG Pactual, the bank has been active in the crypto space in recent years. In April 2023, BTG Pactual announced plans to launch BTG Dol, a stablecoin pegged to the United States dollar on a 1:1 ratio, using the bank’s custody services. Additionally, the bank previously launched a crypto trading app that allows customers to directly invest in cryptocurrencies.
The acquisition of Orama is subject to regulatory approvals from authorities, including the central bank of Brazil. Once completed, BTG Pactual’s digital expansion strategy is expected to offer more investment opportunities to both Orama and BTG Pactual customers.
BTG Pactual’s move into the cryptocurrency space aligns with the growing interest in digital assets in Brazil. The country has experienced a crypto surge, prompting its central bank to tighten regulations. This acquisition allows BTG Pactual to tap into the increasing demand for crypto-related investment options.
Overall, BTG Pactual’s acquisition of Orama demonstrates the investment bank’s commitment to expanding its digital presence and providing its customers with a broader range of investment opportunities, including cryptocurrencies. The digital asset space continues to thrive, and financial institutions like BTG Pactual are positioning themselves to capitalize on this growing market.