US-based cryptocurrency exchange Coinbase has just announced a new acquisition deal dedicated to further opening institutional investors to cryptocurrencies.
On Wednesday, May 27, Coinbase declared that it has completed a deal in acquiring startup crypto brokerage firm Tagomi that focuses on offering institunional clients crypto trading services.
Coinbase in the announcement said the latest development would enhance its services to “advanced traders and the most sophisticated crypto investors.”
Coinbase however did not reveal the amount involved in the deal, but Fortune reported that a familiar source said Coinbase signed the deal for around $100 million, outrunning rival exchange platform Binance in securing the deal. Earlier in November, Tagomi has been valued around $150 million.
The us-based cryptocurrency exchange sees the addition of Tagomi into its family as a huge step in rounding up its fast-growing institutional trading market. In the past, due to increase in demand for Coinbase Custody offering, the exchange had launched features like margin trading and other tools that would let investors have better experience while trading.
Coinbase said Tagomi acquisition will let investors have seamless and better experience while trading equities. Coinbase will now direct its prime brokerage services, professional trading features and custody to one platform.
Tagomi went live in December 2018, and the brokerage platform has since been a good option for hedge funds, trader as well as family offices.
Tagomi arrived into the market solving the problem of users needing to compulsorily trade “over-the-counter” to acquire crypto assets by offering an electronic crypto trading service that let institutional investors buy cryptocurrency assets in a one-off transaction.
Coinbase feels elated to have sealed such a deal as it continues to build a strong foundation for the next wave of crypto investors