Coinbase acquires Tagomi primary brokerage service to expand institutional business
The Coinbase exchange this Wednesday confirmed the acquisition of Tagomi, the primary cryptocurrency service of primary brokerage, putting an end to many months of rumors and speculation.
According to sources of The Block, the deal could range from $ 70 million to $ 100 million. This is one of Coinbase's largest acquisitions to date. It will allow the exchange to continue the development of the institutional direction of its business related to the provision of professional services for the trading and storage of digital assets.
For the first time, a brewing deal became known in November. It was then reported that Tagomi was in talks with several other exchanges, including Binance. An agreement between Coinbase and Tagomi requires regulatory approval. The deal is expected to close by the end of 2020.
Tagomi service was launched in 2018. It allows large investors to trade cryptocurrencies with access to the most favorable order execution prices on the market. Among investors are Peter Thiel, Pantera Capital, Digital Currency Group, and Founders Fund.
According to experts, the proposals of the two companies successfully complement each other. For the formation of full-fledged primary brokerage service, Tagomi lacked the financial base that Coinbase has. The latter, in turn, will gain access to important tools for serving institutional investors.
“We will integrate the Tagomi platform into our own product line and form the basis for the future institutional trading business,” said Shan Aggarwal, Head of Corporate Development at Coinbase.
The Coinbase exchange this Wednesday confirmed the acquisition of Tagomi, the primary cryptocurrency service of primary brokerage, putting an end to many months of rumors and speculation.
According to sources of The Block, the deal could range from $ 70 million to $ 100 million. This is one of Coinbase's largest acquisitions to date. It will allow the exchange to continue the development of the institutional direction of its business related to the provision of professional services for the trading and storage of digital assets.
For the first time, a brewing deal became known in November. It was then reported that Tagomi was in talks with several other exchanges, including Binance. An agreement between Coinbase and Tagomi requires regulatory approval. The deal is expected to close by the end of 2020.
Tagomi service was launched in 2018. It allows large investors to trade cryptocurrencies with access to the most favorable order execution prices on the market. Among investors are Peter Thiel, Pantera Capital, Digital Currency Group, and Founders Fund.
According to experts, the proposals of the two companies successfully complement each other. For the formation of full-fledged primary brokerage service, Tagomi lacked the financial base that Coinbase has. The latter, in turn, will gain access to important tools for serving institutional investors.
“We will integrate the Tagomi platform into our own product line and form the basis for the future institutional trading business,” said Shan Aggarwal, Head of Corporate Development at Coinbase.