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BTG Pactual expands digital strategy with Orama acquisition

Brazil

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In this post:

  • BTG Pactual advances its digital agenda by acquiring crypto brokerage Orama.
  • Orama’s Block3 fund, focusing on digital assets, surged 30% in value within a year.
  • BTG Pactual’s crypto forays include plans for a US dollar-pegged stablecoin, BTG Dol.

BTG Pactual, a major Brazilian investment bank, has taken a significant step forward in its digital strategy. The bank recently inked a deal to fully acquire Orama, a cryptocurrency-friendly brokerage, for 500 million Brazilian reais ($98.7 million). This acquisition aims to extend BTG Pactual’s digital footprints and bring diverse investment avenues to the fore.

Established in 2011, Orama has carved a niche in the financial world. The brokerage boasts assets under custody nearing 18 billion reais ($3.6 billion) and caters to around 360,000 clients. Orama continued, primarily dealing with investment fund distribution and fixed-income products. The firm ventured into crypto, evident from its forays into cryptocurrency investment.

Significantly, the company’s wealth management division, Orama Singular, leaped digital assets just last year. They introduced an actively managed digital asset fund, christened Block3. Investors in this fund enjoy a diversified exposure encompassing Bitcoin BTC, tokens, derivatives, and various other crypto assets.

According to Bloomberg, this move has struck gold for Orama. The value of their digital asset fund witnessed an impressive surge, escalating over 30% from 90.5 reais ($17.9) in October 2022 to 118.8 reais ($23.5) by September 2023.

Additionally, BTG’s digital platforms partner, Marcelo Flora, voiced his optimism regarding this collaboration. He stated that Orama’s clientele could now access BTG’s comprehensive platform. However, before this partnership sees the light of day, it awaits the green signal from several regulatory bodies, including Brazil’s central bank.

Moreover, BTG Pactual isn’t a novice when it comes to cryptocurrency. The bank has showcased a keen interest in crypto-related endeavors in the past. Recently, they unveiled their intentions to roll out BTG Dol, a novel stablecoin directly pegged to the United States dollar. This stablecoin promises a 1:1 ratio and will be safeguarded using the bank’s custody services. This announcement came from their previous initiative, where they presented a crypto trading app. This app empowers customers to invest in cryptocurrencies seamlessly.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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