BitGo enters Brazil's crypto market to support banks under 2025 regulatory framework

BitGo, a U.S.-based cryptocurrency custody provider, has entered Brazil’s growing crypto market by establishing a local office to serve traditional banks seeking to expand into digital assets. The company aims to position itself as a trusted partner for institutions navigating Brazil’s evolving regulatory landscape, offering custody solutions, insurance for in-house custody operations, and compliance tools tailored to institutional needs [1]. BitGo’s move reflects broader trends in Latin America, where banks are increasingly adopting crypto services to diversify offerings and meet demand from tech-savvy clients.

The firm’s expansion into Brazil aligns with the country’s regulatory developments in 2025, including the Central Bank of Brazil’s introduction of a framework for crypto custody and trading. By providing localized services—such as accepting payments in reais and issuing invoices in Brazil—BitGo addresses a critical gap for banks lacking technical expertise to manage crypto assets securely [2]. Luis Ayala, BitGo’s Latam director, emphasized the company’s commitment to complementing, rather than competing with, banks’ existing operations. “We don’t want to compete with these banks’ custody market, but we want to be partners to help them do this clearly and securely,” Ayala stated, highlighting the firm’s strategy to integrate into institutional workflows [1].

BitGo’s services are designed to cater to banks launching crypto exchange platforms, offering staking solutions, or tokenizing assets. The firm already has a presence in Brazil, with over 25 customers, and aims to leverage its global infrastructure in regions such as the U.S., Germany, and Singapore to build trust among risk-averse institutions [1]. Its offerings also compete with Fireblocks, an Israeli crypto custody provider operating in Brazil, as the latter prepares for a public market debut [1]. BitGo’s recent confidential IPO filing further underscores its focus on institutional infrastructure and global expansion [3].

Brazil’s strategic importance in the crypto ecosystem is amplified by its 60 million crypto users and a startup scene fostering innovation. The country’s regulatory progress, including explorations of a central bank digital currency (CBDC), positions it as a regional hub for fintech. For banks, partnering with BitGo offers a streamlined path to compliance with global standards, reducing risks associated with self-custody of digital assets. The firm’s emphasis on banking partnerships differentiates it from generalist crypto exchanges like Coinbase and Gemini, which have also expanded into Latin America [2].

The expansion highlights BitGo’s role in bridging traditional finance and blockchain innovation. As banks seek to capture a share of the $1.5 trillion global crypto market, partnerships with established custodians become critical for navigating compliance challenges. BitGo’s localized approach—combining technical expertise with insurance for in-house custody—positions it to capitalize on Brazil’s momentum. The company’s success in this market could set a precedent for other custodians targeting emerging economies with favorable regulatory environments, further accelerating the integration of crypto into mainstream finance [3].

Sources: [1] [BitGo Lands in Brazil, Targeting Banks Entering the Crypto Business](https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=bitgo-lands-in-brazil-targeting-banks-entering-the-crypto-business) [2] [Bitcoin.com News](https://x.com/btctn?lang=en) [3] [Tech Funding News](https://techfundingnews.com/category/crypto/)