Brazilian bank BTG Pactual buys Bitcoin-friendly brokerage Orama for $99 ScrgruppEn

Major Brazilian investment bank BTG Pactual has acquired cryptocurrency-friendly brokerage Orama DTVM as part of its strategy to expand the bank’s digital platforms.

BTG Pactual has Occurred Agreement to purchase 100% of Orama shares for R$500 million ($98.7 million).

Announcing the news on October 2, BTG Pactual said the acquisition is part of the bank’s digital expansion strategy and provides further investment opportunities.

“We are very excited about the acquisition, which will provide Orama customers with access to the full BTG platform,” said Marcelo Flora, BTG Digital Platforms Partner. The announcement indicates that the acquisition is subject to the necessary regulatory approvals from authorities including the Central Bank of Brazil.

Founded in 2011, Orama is said to have approximately R$18 billion ($3.6 billion) of assets under custody and services to about 360,000 clients. With a focus on distributing mutual funds and fixed income products, Orama has also explored investing in cryptocurrencies.

In April 2022, Orama’s wealth management arm Orama Singular Launched An actively managed fund focused on digital assets. Called Block3, the fund offers multi-market investing in the cryptocurrency industry, providing exposure to various crypto assets, including Bitcoin (BTC), tokens, derivatives and more.

Related: The rise of cryptocurrencies in Brazil prompts the central bank to tighten regulation

He owns Orama’s digital asset fund registered It’s a successful trend over the past year, rising more than 30% from R$90.5 ($17.9) in October 2022 to R$118.8 ($23.5) in September 2023, according to data from Bloomberg.

Block3 Ativos Digitais FIM IE 1-Year Price Chart. Source: Bloomberg

It seems unclear whether Orama’s purchase from BTG Pactual will result in some new cryptocurrency-related products coming to BTG Pactual. BTG Pactual did not immediately respond to Cointelegraph’s request for comment on the acquisition.

Aside from purchasing Bitcoin-friendly Orama, BTG Pactual has been active in cryptocurrency-related projects in recent years. In April 2023, the bank announced plans to launch BTG Dol, a new stablecoin pegged to the US dollar 1:1, using the bank’s custodial services. The bank previously launched a cryptocurrency trading app that enables customers to make direct investments in cryptocurrencies.

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