BitGo has established a fully regulated subsidiary, BitGo Brasil Tecnologia Ltda., in São Paulo, ahead of Brazil's new cryptocurrency regulations.

By aligning its services with Brazil's regulatory landscape, BitGo aims to position itself as a trusted partner for banks navigating the complexities of digital asset management.

This expansion comes at a time when Brazil's regulatory environment is evolving, creating a demand for secure custody and compliance tools among financial institutions.

Brazil's significant unbanked population and tech-savvy demographic present a promising opportunity for blockchain innovation, as local banks look to leverage digital assets for financial inclusion.

The growth of BitGo reflects Brazil's crucial role in the international crypto market, driven by its large internet user base and evolving fintech landscape.

BitGo's expansion aligns with the increasing institutional interest in the crypto market, as banks seek to diversify their offerings to meet customer demand for digital assets.

Luis Ayala, BitGo's Latin America director, emphasized the company's focus on collaboration with banks to ensure their services integrate smoothly with existing operations.

However, building trust in digital asset systems remains a challenge in Brazil, which has hindered wider adoption and must be addressed for BitGo's success.

Ayala expressed optimism about establishing long-term relationships with Brazilian financial institutions, indicating BitGo's commitment to the local market.

BitGo offers a comprehensive range of services, including custody solutions, insurance for custodial operations, and compliance tools tailored for banks.

The company aims to leverage Brazil's growing institutional interest in digital assets by providing tailored custody solutions, including insurance for banks with in-house custody systems.

The Central Bank of Brazil and the Securities and Exchange Commission (CVM) have established frameworks that encourage the exploration of blockchain for various financial applications.