Brazillian bank BTG Pactual, in its expansion, has acquired cryptocurrency-friendly brokerage Orama for $99M and is also planning to launch its own stablecoin.
BTG Pactual has agreed to purchase all of Orama’s shares for 500 million Brazilian reals ($98.7 million). BTG Pactual stated on October 2 that the acquisition is part of the bank’s digital expansion strategy and provides additional investment opportunities.
BTG’s digital platforms partner Marcelo Floro exclaimed, “We are very excited about the acquisition, which will provide Orama customers with access to the complete BTG platform.”
According to the announcement, the acquisition is contingent on regulatory approvals from authorities, including the Brazilian central bank.
Orama, founded in 2011, reportedly has roughly 18 billion reais ($3.6 billion) in assets under custody and approximately 360,000 clients. Orama, specializing in disseminating investment funds and fixed-income products, investigated cryptocurrency investment.
In April 2022, Orama’s wealth management subsidiary, Orama Singular, launched an actively managed fund focused on digital assets. Block3 is a multimarket cryptocurrency investment fund that offers exposure to Bitcoin, tokens, derivatives, and other crypto assets.
According to Bloomberg data, the value of Orama’s digital asset fund increased by more than 30 percent from 90.5 reais ($17.9) in October 2022 to 118.8 reais ($23.5) in September 2023.
It is unknown if BTG Pactual’s acquisition of Orama will result in new crypto-related products at the bank.
BTG Pactual has been active in crypto-related endeavors in recent years, in addition to acquiring Bitcoin-friendly Orama. Using the bank’s custody services, in April 2023, the bank announced intentions to launch BTG Dol, a new stablecoin pegged to the United States dollar at a 1:1 ratio. Previously, the bank introduced a crypto trading app that allowed customers to invest directly in cryptocurrencies.
