Brazil's BTG Pactual Bank Acquires Bitcoin Brokerage Orama in a $99M Deal
BTG Pactual to acquire Orama, strengthening digital presence and diversifying investment offerings. Pending regulatory approvals.
BTG Pactual announced on October 2 that it had entered into an agreement to acquire 100% of Orama's shares for 500 million Brazilian reais, equivalent to $98.7 million. This acquisition aligns with the bank's strategy to strengthen its digital presence and diversify its investment offerings. However, it's worth noting that the acquisition is still pending regulatory approvals, including from the Central Bank of Brazil. Marcelo Flora, BTG’s digital platforms partner, stated that:
“We are very excited about the acquisition, which will provide Orama customers with access to the complete BTG platform”
Founded in 2011, Orama has made a significant mark in the Brazilian financial sector. With nearly 18 billion reais ($3.6 billion) of assets under custody, the brokerage serves around 360,000 customers. While its primary focus has been on the distribution of investment funds and fixed-income products, Orama has not shied away from the world of cryptocurrency investments.
In April 2022, Orama's wealth management division, Orama Singular, introduced an actively managed fund dedicated to digital assets, named Block3. This fund provides a diversified investment avenue in the cryptocurrency sector, offering exposure to a range of crypto assets, including Bitcoin, tokens, derivatives, and more. Data from Bloomberg indicates that Orama's digital asset fund has seen substantial growth, registering a surge of over 30% from October 2022 to September 2023.
The bank has been proactive in its crypto-related ventures over the past few years. In April 2023, BTG Pactual unveiled plans to introduce BTG Dol, a new stablecoin pegged to the U.S. dollar at a 1:1 ratio, leveraging the bank's custody services. Additionally, the bank had previously rolled out a crypto trading application, enabling its customers to directly invest in cryptocurrencies.