Brazilian bitcoin treasury company OranjeBTC is pursuing a strategy to expand bitcoin’s use in financial markets, focusing on bitcoin-backed loans and digital credit products.

Bitcoin Magazine reported on Thursday that OranjeBTC Chief Executive Kiu Gomes introduced what he described as Brazil’s first case of a bitcoin-backed loan. He said bitcoin’s uses are expanding into finance.

Gomes rated bitcoin highly as collateral. He said new financial products such as digital credit and bitcoin-backed lending are strengthening the link between bitcoin and global financial markets. OranjeBTC is using that trend to develop a corporate-level bitcoin utilisation strategy in Brazil.

He pointed to regulatory changes and investor demand in Brazil as a backdrop to the strategy. Gomes said Brazil ranks first in bitcoin adoption among ordinary users and has favourable conditions for setting up a company to pursue a bitcoin treasury strategy. He also cited a post-election shift to a pro-market economic stance, the possibility of falling interest rates and conditions for the real.

New bitcoin regulations and a virtual asset service provider (VASP) licensing system were also presented as major factors. OranjeBTC believes these institutional changes will support the design and distribution of bitcoin-based financial products.

It also highlighted investment access through capital markets. Global investors can buy OranjeBTC shares, and Brazilian investors can invest in preferred shares of bitcoin treasury companies through DIGY11, an exchange-traded fund (ETF) listed on Brazil’s B3 stock exchange, it said.

DIGY11 includes Strategy's STRC and Strive's SATA. Both are perpetual preferred shares issued by companies that hold bitcoin as a major asset, structured to seek regular dividend income with no maturity. DIGY11 is designed to invest in these preferred shares and pay monthly distributions in reais, and it has completed its first distribution. The strategy aims to link fundraising tools for bitcoin-related companies to income-focused products for Brazilian investors.

It also raised the possibility that bitcoin’s role could expand from a collateral asset to a reserve asset. It argued that as digital credit and collateralised lending spread, bitcoin could move closer to a global reserve currency. This view treats bitcoin not only as an investment aimed at price gains but also as a financial asset used for providing collateral, distributing returns and creating credit.

OranjeBTC is developing the strategy with Brazil as its base. The key questions are whether regulatory changes will translate into an actual expansion of financial products and how much local investment demand a bitcoin-collateral-based credit model can secure. Whether it leads to sustained use and investment beyond product launches is expected to determine whether the strategy takes hold.