Coinbase has announced the acquisition of Tagomi, the leading crypto prime brokerage platform, in order to bolster the operator’s offerings for advanced traders and the most sophisticated crypto investors.
The leading US-based cryptocurrency exchange has grown during its eight years of existence to become one of the most trusted names in crypto as it provides clients with industry-leading trading and custody platforms. As some of the world’s top hedge fund and macro investors enter the space and search for the right infrastructure through which to engage with crypto, Coinbase chose to add Tagomi to its product suite.
It will allow Coinbase 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.
According to the firm, the Coinbase Custody offering has seen tremendous growth driven by demand from institutional investors. The increased volumes have led Coinbase to build advanced features such as margin trading for institutional investors and new tools to help investors segregate their trading strategies.
Tagomi, the newly added service, has been the platform of choice for many advanced traders, hedge funds, and family offices, including well-known names such as Paradigm, Pantera, Bitwise, and Muticoin, according to the official statement. The firm is led by co-founders Greg Tusar, Jennifer Campbell, and Marc Bhargava, bringing experience from leading firms like Goldman Sachs, Citadel, KCG, Tower Research, and USV.
“We’re proud to build the foundation for the next wave of crypto investors by bringing onboard the first electronic prime brokerage in crypto. 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. We recognize that the journey is only just beginning, but we’re excited to be builders, and we welcome Tagomi to our mission”; said the statement.
The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close later this year.
Earlier this year, Coinbase appointed Surojit Chatterjee, former Vice President of Product at Google, as its new Chief Product Officer, where he will play a critical role in making the crypto economy accessible to millions more people through Coinbase’s suite of products. At Google, he led Google Shopping, which helps people discover and compare products on Google. Prior to that, he was the Head of Product at Flipkart, a popular Indian e-commerce site, leading product management, user experience, product operations, and data science. Before Flipkart, he co-founded Google’s mobile search ads product.
Coinbase has most recently decided to shut down its subsidiary Earn.com as it plans to expand the services of its Coinbase Earn program whose functions were very similar to and mirrored that of its subsidiary Earn.com. The firm acquired Earn.com for US$100 Million in April 2018 in order to bring into fold Balaji Srinivasan, Co-Founder and Chief of Earn.com platform, to serve as its Chief Technology Officer.