Sources close to cryptocurrency broker Tagomi have announced that it has been acquired by Coinbase as part of a rumoured $150 million deal.

Coinbase, one of the most popular fiat-to-crypto exchanges in the industry, is strategically building its links with institutional crypto traders despite being best known for providing an easy way for retail investors to enter the crypto markets.

Coinbase had entered into negotiations with Tagomi to discuss an acquisition earlier this month.

Sources at the time said the two cryptocurrency firms were the “perfect match”, with closely aligned values and business goals.

Tagomi is one of only a handful of companies to be granted a ‘BitLicence’, which is an official approval to carry out cryptocurrency business in New York.

Tagomi became the 18th company to gain such a licence in March. Other firms to have been granted a BitLicence include Square, a start-up led by Twitter founder Jack Dorsey, which received a BitLicence for its CashApp product.

The new prime broker raised $28 million in early venture capital funding from the likes of Morgan Creek Capital Management and blockchain investment firm Pantera Capital.

Binance US also announced earlier this month that it would be working with Tagomi to provide liquidity for its platform. However, at this point, it’s unclear how Binance’s relationship with Tagomi will continue under Coinbase’s new leadership.

Coinbase Prime addition

The acquisition of Tagomi is likely part of a wider strategy by Coinbase to expand its Coinbase Prime offering, which is an institutional-grade trading platform.

Aimed at Wall Street investors, Coinbase Prime would benefit from Tagomi’s existing industry links and client base, which include pension funds, hedge funds, and family offices.

Coinbase has also been working to add new assets to both its institutional and retail platforms in a bid to keep up with other offerings in the space.

Last year, Coinbase confirmed it was looking to add Cardano, Brave’s BAT, 0x, Stellar, and Zcash to the platform – most of which have now been added.

 

The post Prime broker Tagomi acquired by Coinbase in $150 million deal appeared first on Coin Rivet.

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