Coinbase Buys Tagomi to Boost Institutional Trading

The terms of the deal are not disclosed.

Coinbase, a leading US-based crypto exchange, has officially announced on Wednesday its acquisition of Tagomi, a crypto prime brokerage platform.

With this, the crypto exchange is planning to bolster its offerings to advanced traders and sophisticated crypto investors.

Neither the companies disclose the terms of the deal, however, Coinbase confirmed that it will be finalized later this year.

“The addition of Tagomi will round out our product suite for the fast-growing institutional trading market,” Coinbase wrote. “It will allow us to offer custody, professional trading features, and prime brokerage services on one platform, giving sophisticated investors the seamless, powerful trading experience they have come to expect in equities and FX markets.”

Rumors in the market around the deal

Last November, media circulated rumors that Coinbase acquired Tagomi for $150 million, However, the exchange’s communications head publicly denied any such claims or its interest in Tagomi.

Tagomi was co-founded by former HFT technologists, including Greg Tusar, global head of electronic trading at Goldman Sachs, and Jennifer Campbell from Union Square Ventures.

Suggested articles

Covid-19 Fallout: A Unique Opportunity for the FX Market!Go to article >>

The startup operates as a prime broker in the crypto space, aggregating liquidity across multiple exchanges and executing trades based on a single unified order book

Apart from its prime brokerage offerings, Tagomi also launched lending and borrowing services.

In two years of its establishment, the prime brokerage raised $28 million from venture capitals including Pantera Capital, Paradigm, and Dragonfly Capital Partners, according to Crunchbase.

Though Coinbase confirmed Tagomi’s operation in the near future, it is still thinking about the startup’s long-term options.

A crypto unicorn

Coinbase popularized itself as the provider of crypto-fiat exchange and wallet platform. Over the years, the San Francisco-headquartered company expanded into many other areas including crypto custody and even data oracle services.

“We’re proud to build the foundation for the next wave of crypto investors by bringing onboard the first electronic prime brokerage in crypto,” Coinbase noted. “Even in a time of uncertainty, we view now more than ever as the time to push forward our mission of building the crypto-economy.”