BTG Pactual, a prominent Brazilian investment bank, has advanced its digital strategy by announcing the acquisition of Orama, a crypto-friendly brokerage, for 500 million Brazilian reais ($98.7 million). This strategic move aims to expand BTG Pactual’s digital presence and broaden its investment opportunities.
Founded in 2011, Orama has established itself as a notable player in the financial sector. With nearly 18 billion reais ($3.6 billion) in assets under custody and a client base of approximately 360,000, Orama initially focused on investment fund distribution and fixed-income products. However, it made a notable foray into the world of cryptocurrencies.
One significant development from Orama was the launch of its wealth management division, Orama Singular, which ventured into digital assets just last year. Orama Singular introduced an actively managed digital asset fund called Block3, offering investors a diversified portfolio including Bitcoin, tokens, derivatives, and other crypto assets.
Orama’s move into the crypto space has proven to be a success, with the value of its digital asset fund experiencing substantial growth. According to Bloomberg, the fund’s value surged over 30% from 90.5 reais ($17.9) in October 2022 to 118.8 reais ($23.5) by September 2023.
Marcelo Flora, BTG Pactual’s digital platforms partner, expressed optimism about collaborating with Orama. He highlighted that Orama’s clients would soon have access to BTG’s comprehensive platform. However, this partnership is pending approval from various regulatory bodies, including Brazil’s central bank.
It’s worth noting that BTG Pactual has demonstrated a growing interest in the cryptocurrency sector. The bank recently unveiled plans to launch BTG Dol, a new stablecoin pegged directly to the United States dollar. This stablecoin will maintain a 1:1 ratio and benefit from the bank’s custody services. This announcement followed BTG Pactual’s earlier initiative, which introduced a cryptocurrency trading app allowing customers to invest in cryptocurrencies seamlessly. This move underscores BTG Pactual’s commitment to embracing digital assets and blockchain technology.