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Brazilian Bank BTG Pactual Snaps Up Crypto-Inclined Brokerage Orama, Eyeing Digital Expansion

BTG Pactual acquires crypto-friendly Orama, reinforcing digital expansion and potentially influencing cryptocurrency product offerings.

Wed, 04 Oct 2023, 02:05 am UTC

The bustling financial environment of Brazil witnessed a pivotal move when BTG Pactual, a leading investment bank, elected to acquire Orama, a brokerage notable for its cryptocurrency-friendly stance, amplifying its digital arm. A purchase agreement confirms the bank's decision to obtain all shares of Orama for a sum of 500 million Brazilian reais, approximately 98.7 million U.S. dollars.

This acquisition, disclosed to the public on October 2, becomes a key cog in BTG Pactual's strategy to propel its digital wings, while simultaneously enhancing its investment options available to customers.

The bank's digital platform partner, Marcelo Flora, conveys a buoyant outlook on the development, affirming that patrons of Orama will gain access to the comprehensive BTG platform. As per the announcement, the acquisition remains in the balance, pending requisite approvals from regulatory bodies, inclusive of the Central Bank of Brazil.

Orama, conceived in 2011, currently maintains an impressive asset custody totaling nearly 18 billion reais, equivalent to 3.6 billion U.S. dollars, and serves a customer base hovering around 360,000. While being a hub for investment funds and fixed-income products, it has concurrently pierced the cryptocurrency investment sphere.

In April of 2022, Orama Singular, its wealth management branch, unveiled an actively managed digital asset fund named Block3. This fund, which caters to multimarket investments in the cryptocurrency sector, encompasses a diverse array of crypto assets like Bitcoin, tokens, and derivatives.

Notably, Orama's Block3 has witnessed an appreciable ascent over the prior year, escalating over 30% from 90.5 reais in October 2022 to 118.8 reais in September 2023, as per Bloomberg data.

While the forthcoming fusion of BTG Pactual and Orama sparks curiosity regarding potential new cryptocurrency-related products from the bank, any precise plans remain under wraps. No comment has been offered from BTG Pactual in immediate response to inquiries.

Moreover, BTG Pactual has not been a stranger to the cryptocurrency sphere in preceding years. Come April 2023, the bank shared its intentions to introduce BTG Dol, a stablecoin meticulously pegged to the U.S. dollar, utilizing the bank’s custodial services.

Furthermore, a cryptocurrency trading application has been inaugurated by the bank previously, allowing patrons to immerse directly into cryptocurrency investments.

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