Cryptocurrency platform Coinbase announced on Wednesday it is set to acquire Tagomi, a U.S.-based institutional crypto brokerage platform. Coinbase revealed that the acquisition will cap off a period of strong institutional focus for its platform.
“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. This is why we’re excited to announce that we’ve agreed to acquire Tagomi, the leading crypto prime brokerage platform. The acquisition will bolster our offerings for advanced traders and the most sophisticated crypto investors.”
Coinbase noted that it has seen a swell in demand from institutional investors over the past year, driving tremendous growth in its Coinbase Custody offering and increased volumes on its trading platforms. The addition of Tagomi will round out Coinbase’s product suite for the institutional trading market.
“[The acquisition] 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.”
Coinbase then added since its launch, agomi has become the platform of choice for many advanced traders, hedge funds, and family offices, including Paradigm, Pantera, Bitwise, and Muticoin. Financial details about the acquisition have not been disclosed at this time.
The acquisition of Tagomi comes just days after Coinbase Custody, the digital asset custody solutions offered by San Francisco-based exchange Coinbase, has introduced staking for blockchain interoperability platform Cosmos’ ATOM tokens. Coinbase Custody was reportedly described as the first digital asset custodian to provide staking and “active governance” for cryptocurrencies residing in cold wallets (offline storage).