Brazil’s BTG Pact Bank bought Bitcoin-friendly broker Orama for $99M
Major Brazilian investment bank BTG Pactual is acquiring crypto-friendly brokerage Orama as part of its strategy to expand the bank's digital platforms.
BTG Pactual has signed an agreement to purchase 100% of Orama shares for 500 million Brazilian reais ($98.7 million).
Announcing the news on October 2, BTG Pascal said the acquisition was part of the bank's digital expansion strategy and would provide additional investment opportunities.
“We are very excited about the acquisition, as it gives Orama clients access to the complete BTG platform,” said Marcelo Flora, Partner, BTG Digital Platforms. The acquisition is subject to necessary regulatory approvals from authorities, including the Brazilian Central Bank, the announcement notes.
In the year Orama, which was founded in 2011, is said to have about 18 billion riels ($3.6 billion) in assets under management and about 360,000 customers. Orama, which specializes in investment funds and distribution of fixed income products, has been exploring cryptocurrency investing.
In April 2022, Orama's wealth management arm, Orama Singular, launched an actively managed fund focused on digital assets. Called Block3, the fund offers multimarket investment in the cryptocurrency industry, providing exposure to various crypto assets including Bitcoin (BTC), tokens, derivatives and more.
Related: Brazil's crypto surge prompts central bank to tighten regulation
Orama Digital Asset Fund recorded a successful trend last year, rising more than 30% from 90.5 riel ($17.9) in October 2022 to 118.8 riel ($23.5) in September 2023, according to Bloomberg data.
It is unclear whether BTG Pactual's purchase of Orama will result in some new crypto-related products at the bank. BTG Pactual did not immediately respond to Cointelegraph's request for comment on the acquisition.
From buying Bitcoin-friendly Orama, BTG Pactual has been active in crypto-related ventures in recent years. In April 2023, the bank announced plans to launch a new stablecoin, BTG Dol, pegged to the US dollar at a 1:1 ratio using the bank's escrow facility. The bank previously launched a crypto trading app that allows customers to invest in cryptocurrencies.
Magazine: Web3 Gamer: Minecraft Bans Bitcoin P2E, iPhone 15 and crypto gaming, Formula E
