Brazilian investment bank BTG Pactual is set to expand its digital platforms with the acquisition of Orama, a cryptocurrency-friendly brokerage. In a deal worth 500 million Brazilian reais ($98.7 million), BTG Pactual will purchase 100% of Orama’s shares. The announcement, made on October 2nd, emphasized that this acquisition is part of BTG Pactual’s digital expansion strategy and will provide more investment opportunities for customers.
Marcelo Flora, the partner of BTG Pactual’s digital platforms, expressed excitement about the acquisition. He stated that Orama customers will now have access to the complete BTG platform. However, the acquisition is still subject to regulatory approvals from authorities, including the central bank of Brazil.
Founded in 2011, Orama boasts nearly 18 billion reais ($3.6 billion) of assets under custody and serves approximately 360,000 customers. While primarily focused on the distribution of investment funds and fixed-income products, Orama has also ventured into cryptocurrency investments. In April 2022, the company’s wealth management arm, Orama Singular, introduced Block3, an actively managed fund centered around digital assets. Block3 offers diversified exposure to various crypto assets such as Bitcoin (BTC), tokens, and derivatives.
Orama’s digital asset fund has been performing well, with a notable surge of over 30% from October 2022 to September 2023. The fund’s value increased from 90.5 reais ($17.9) to 118.8 reais ($23.5) during this period, according to data from Bloomberg.
It remains uncertain whether BTG Pactual’s acquisition of Orama will lead to the introduction of new crypto-related products at the bank. BTG Pactual has previously engaged in various crypto-related ventures. In April 2023, the bank announced plans to launch BTG Dol, a stablecoin pegged to the United States dollar at a 1:1 ratio, utilizing the bank’s custody services. Furthermore, BTG Pactual had already launched a crypto-trading app that allows customers to directly invest in cryptocurrencies.
Overall, this move by BTG Pactual signifies its commitment to expanding its digital presence and embracing the opportunities presented by the cryptocurrency market. The acquisition of Orama will not only strengthen the bank’s digital platforms but also provide Orama customers with access to a broader range of investment options.