Brazil's BTG Pactual Bank Set to Acquire Crypto-Friendly Brokerage Orama DTVM
Summary:
Brazilian investment bank BTG Pactual is purchasing cryptocurrency-friendly brokerage Orama DTVM for 500 million Brazilian reais ($98.7 million). The acquisition, part of the bank's digital expansion strategy, is pending necessary regulatory approvals. Orama, which has nearly 18 billion reais ($3.6 billion) of assets under custody, has been exploring cryptocurrency investment through its wealth management arm, Orama Singular. BTG Pactual's future cryptocurrency-related offerings after the acquisition remain uncertain.
The prominent Brazilian bank BTG Pactual is set to take over Orama DTVM, a brokerage known for its cryptocurrency focus. This move is part of the bank's efforts to further develop its digital platforms. Disclosing the news on October 2, BTG Pactual stated that it has arranged to purchase all Orama shares at a cost of 500 million Brazilian reais ($98.7 million). The acquisition, which will offer users additional investment options, represents the bank's digital growth strategy. Marcelo Flora, a partner of BTG’s digital platforms, expressed his enthusiasm for the acquisition, noting that it would grant Orama clients full access to BTG's expansive platform. Nevertheless, required regulatory approvals from controlling entities including the Central Bank of Brazil must be obtained prior to finalization of the acquisition.
Established in 2011, Orama is reported to oversee nearly 18 billion reais ($3.6 billion) in assets and serve approximately 360,000 clients. While known for its concentration on distributing investment funds and fixed-income products, Orama has also directed efforts towards cryptocurrency investment exploration. In April 2022, Orama's wealth management division, Orama Singular, initiated a fund specialized in managing digital assets known as Block3. The fund is intended for multi-market investment in the cryptocurrency sector and provides exposure to a range of crypto assets like Bitcoin (BTC), tokens, derivatives, and more.
Orama’s digital asset fund has demonstrated a successful trajectory over the preceding year, rising over 30% from 90.5 BRL ($17.9) in October 2022 to 118.8 BRL (23.5) in September 2023, based on Bloomerg data. Whether the BTG Pactual-Orama merger will give birth to additional products related to cryptocurrency through BTG Pactual is currently uncertain. No response was received from BTG Pactual when Cointelegraph seeking comments on the acquisition.
Aside from the planned acquisition of Orama, BTG Pactual has shown recent activity in crypto-related projects. The bank disclosed intentions to launch BTG Dol in April 2023, a new stablecoin tethered to the U.S. dollar at a 1:1 ratio, to be held by the bank. Earlier, the bank introduced a crypto trading application that permits customers to straightforwardly invest in cryptocurrencies.
Published At
10/3/2023 11:40:10 AM
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