BitGo establishes a custody subsidiary in Brazil to seize the opportunity in the emerging crypto market.

[Coin World] As Brazil moves towards stricter encryption regulations, BitGo is taking timely action to become the country's preferred institutional accomplice. By launching a fully regulated subsidiary in São Paulo, ahead of potential laws that may require domestic Secret Key management, the company positions itself as the default solution for banks and asset management firms in Brazil's rapidly evolving digital asset space.

On July 25, cryptocurrency custody giant BitGo announced the official launch of BitGo Brasil Tecnologia Ltda., a fully regulated subsidiary aimed at serving banks, brokerage firms, and asset management companies in the country. BitGo stated that this move comes as Brazil's legislative body develops stricter rules for virtual asset service providers, including potential requirements for domestic 密钥 management, which BitGo has already built into its infrastructure. By establishing a real business now, the company positions itself as the default institutional custodian, ahead of competitors' responses.

BitGo's expansion in Brazil can be interpreted as a calculated response to three converging factors: regulatory momentum, institutional demand, and Brazil's unique position in the Latin American crypto economy. The country's Congress is currently refining legislation that may require financial institutions to store digital assets with local custodians, echoing the European MiCA framework. BitGo has just obtained a MiCA license in Germany and is replicating this strategy by establishing physical infrastructure before the rules are implemented.

"We hope that banks see us as allies," said Luis Ayala, BitGo's head of Latin America. "We are prepared to meet any emerging needs, including security, technology, and respect for local laws. Even if legislation takes a different path, we will remain here as a partner for Brazilian institutions."

For Brazil's financial giants, the arrival of BitGo addresses an urgent dilemma. Major banks such as Itaú and Bradesco have been cautiously exploring crypto services but lack a custody partner that combines institutional-grade security with on-site compliance. BitGo Brasil will offer insured cold storage, over-the-counter trading platforms, and automated fund management tools, all of which will operate within Brazilian jurisdiction. Crucially, the subsidiary provides audit-ready APIs tailored to local accounting standards, a feature that is essential for auditors from companies like PwC and KPMG Brazil.

The timing also reflects Brazil's maturity in surpassing retail cryptocurrency speculation. With the central bank trialing its Drex digital currency and asset management companies like XP Inc. launching Bitcoin ETFs, institutions need to connect the infrastructure of traditional finance and blockchain. BitGo's track record in Europe, including its partnerships for custodial assets for certain companies, gives it credibility, but its localization strategy is what sets it apart.