Coinbase, a famous exchange that also features products for institutional investors, has acquired Tagomi, a brokerage platform.
We're excited to announce that we've agreed to acquire @tagomisystems, the leading crypto prime brokerage platform. The deal will round out our institutional product suite and provide prof. investors and funds an all-in-one solution for crypto trading. https://t.co/Qij2FmcX7M
– Coinbase (@coinbase) May 27, 2020
Coinbase announced the acquisition and explained that Tagomi represents trustworthiness, broadening its vision of where the cryptocurrency industry is now – the world's largest hedge funds and top investors are entering the industry and seeking a reliable infrastructure to operate.
Coinbase and institutional investors
To meet the needs of institutional investors, Coinbase had created Coinbase Custody years ago which recently added various assets and margin operations.
Now with this new acquisition, the offer for institutional investors is expanding with brokerage: Investors will be able to trust a single company that can manage everything from asset custody to margin trading without any hassle, not even in terms of security.
For its part, Tagomi, launched more than 18 months ago, has been chosen by the largest investment funds, including Pantera Capital, Bitwise and others. Its team, co-founded by Greg Tusar, Jennifer Campbell and Marc Bhargava, comes from the traditional financial sector and from companies like Goldman Sachs, Citadel and others.
This could represent the start of a new wave of institutional investors They will be able to enter the world of cryptocurrencies by increasing their focus on the sector.
Furthermore, this shows how more and more institutions are turning their attention to this sector and cryptocurrencies. Recently, A bitcoin-based pension plan has also been created.
Furthermore, institutional investors had already exchanged many bitcoins in Last March thanks to futures of Bakkt and other solutions, increasing asset volumes.
Bitfinex was also recently launched in this sector with a product of cryptocurrency custody for this type of investors.