CoinBase Acquires Tagomi to Boost Institutional Trading

San Francisco-based cryptocurrency exchange Coinbase is finally acquiring Tagomi, a prime brokerage platform specializing in digital asset trading.

May 27 2020 | AtoZ Markets – Major cryptocurrency exchanges continue to pave the way for institutional involvement in the space. The US-based digital asset exchange, Coinbase, just announced the acquisition of the leading institutional cryptocurrency firm Tagomi.

Coinbase acquires Tagomi

Cryptocurrency exchange Coinbase announced Wednesday the acquisition of the leading institutional crypto firm Tagomi. The move is aimed to bolster the company’s propositions for advanced traders and “the most sophisticated crypto investors.”

According to the official report, there’s a swell in demand on behalf of institutional investors in the past year. This, in turn, has caused a “tremendous” growth in the exchange’s Custody solution, as well as increased volume on its trading platform.

“The addition of Tagomi will round out our product suite for the fast-growing institutional trading market. 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.” – the announcement reads.

Related: Coinbase Acquires Xapo Institutional Custody Service

Institutional interest is growing

Indeed, Coinbase seems to be gearing up for providing more and more comfort to traditional institutional investors. After all, the exchange became one of the first clients from the cryptocurrency field of the US banking giant JP Morgan.

The claims of the company are not without their merit. A recently released survey from Big Four auditing firm PwC revealed that the institutional interest in cryptocurrencies doubled in 2019.

On another note, Grayscale, an established authority in institutional cryptocurrency investing, has reportedly increased its exposure to Bitcoin as it acquired around 33% of all bitcoins mined over the past 100 days.

This, however, lines up well with what Coinbase had to say about their latest acquisition:

“Today, we’re at an inflection point in the industry, with some of the world’s top hedge fund and macro investors entering the space and searching for the right infrastructure through which to engage with crypto.”

Indeed, even the legendary hedge fund manager Paul Tudor Jones recently said that he has started buying Bitcoin.

What do you think about Coinbase’s latest acquisition of Tagomi? Share your thoughts in the comments section below. 

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