Bitgo Expands into Brazil
Bitgo, a prominent cryptocurrency custody provider headquartered in the United States, is expanding its footprint by opening an office in Brazil. This strategic move is aimed at capturing the interest of local banking institutions that are beginning to explore cryptocurrency offerings. Currently, Bitgo serves more than 25 clients in Brazil, positioning them well to capitalize on the increasing demand for crypto services among traditional financial entities.
Local Presence and Regulatory Landscape
Luis Ayala, Bitgo’s Latam director, shared insights with Valor Economico about the uncertain regulatory landscape surrounding cryptocurrencies in Brazil. He emphasized that having a local presence enables Bitgo to facilitate transactions in Brazilian reais and manage invoicing directly within the country, thereby enhancing the service experience for their clients.
Services Offered
While the company is focused primarily on assisting banks that are seeking third-party custody solutions for digital assets, Ayala noted that Bitgo can also provide insurance products tailored to these institutions’ specific needs when they opt for in-house custody systems.
Rather than directly competing with banks, Bitgo intends to integrate its services into the existing operations of financial institutions, positioning itself as a supportive partner.
“We aim to enhance their local custody mechanisms with our insurance features, ensuring a secure and transparent service,”
Ayala elaborated.
Global Operations and Market Competition
Bitgo’s existing operations encompass custody solutions in various global locations, including South Dakota and New York in the U.S., as well as in Germany, Denmark, Switzerland, Dubai, and Singapore, which Ayala cited as one of the company’s strengths. Besides focusing on banks, Bitgo is also set to deliver tailored solutions for cryptocurrency exchanges and other crypto-native companies, which will include staking services.
This move comes amid increased competition in the Brazilian market, particularly from Israeli firm Fireblocks, which is also targeting local financial operators as it prepares for an IPO. Bitgo’s entry into Brazil signifies a growing trend of cryptocurrency firms striving to cater to legacy financial institutions that are gradually embracing digital asset services.
