The fintech landscape is changing and digital currency wallet and crypto exchange platform Coinbase is ready to change right along with it. This is evident in the San Francisco-based company’s move today to acquire Tagomi, a cryptocurrency brokerage platform. Terms of the deal are undisclosed.
Coinbase anticipates that the new addition will help it appeal to advanced traders and “sophisticated” crypto investors, two groups that have shown increased interest in Coinbase as of late. The company has catered to these investors by launching tiered offerings, Coinbase Pro, which offers advanced features such as margin trading and tools to help segregate trading strategies; and Coinbase Prime, which is a professional trading platform for institutional clients.
“We’ve seen a swell in demand from institutional investors over the past year, driving tremendous growth in our Coinbase Custody offering and increased volumes on our trading platforms,” the company said in a blog post. “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.”
Chicago-based Tagomi was launched just a year-and-a-half ago and has since raised $28 million. The company caters to advanced traders, hedge funds, and family offices, including well-known names such as Paradigm, Pantera, Bitwise, and Multicoin.
The acquisition, which is subject to regulatory approvals, is scheduled to close later this year.