On May 27, it has been reported in an announcement that the exchange claimed the acquisition agreement came at “an inflection point in the industry,” a moment when increasing numbers of hedge fund and macro investors are venturing into the crypto space.
However, Coinbase stated that the exchange has seen a “swell in demand” for crypto investment opportunities from institutional clients over the past year, which has prompted it to roll out new targeted offerings such as margin trading and has boosted growth in Coinbase Custody, its professional custody service.
The announcement came on the heels of media stirring back in fall 2019 when Coinbase was moved to officially deny it had then acquired Tagomi.
As per the report, some had claimed that Tagomi’s increased appeal to retail trading clients and high-net-worth individuals had brought it into direct competition with Coinbase Pro, the professional trading platform of Coinbase.
It has been analyzed that Tagomi has established itself as a reputable, regulated crypto brokerage firm by securing the exacting BitLicense from the New York State Department of Financial Services in March 2019.
According to the latest announcement, Coinbase noted that Tagomi had become “the platform of choice for many advanced traders, hedge funds, and family offices,” including Paradigm, Pantera, Bitwise, and Muticoin.
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