Coinbase, the largest cryptocurrency exchange in the US announced on Tuesday that it would be acquiring Tagomi, a crypto-focused brokerage. The acquisition was announced via the company blog and Twitter.
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
The companies did not disclose an acquisition price, but a person close to the deal said Coinbase paid entirely with its privately held stock. The person added that media reports in November—which described a rumored $150 million price tag—significantly overstated the value. Meanwhile, a source familiar with Tagomi said the price was close to $100 million and added that Coinbase outbid rival crypto giant Binance to land the deal.
Tagomi cofounders Jennifer Campbell, Greg Tusar and Marc Bhargava | Image via Forbes
Tagomi has only been in existence for 18 months, was founded by Jennifer Campbell, a former investor at Union Square Ventures, the company has already become a leading resource for big-name players. The startup had raised $28 million from Founders Fund, Collaborative Fund, Elad Gil, Digital Currency Group and others.
As AZCoin News reported on February 27. Tagomi joined Libra Association, that governs the Facebook-backed Libra stablecoin. Tagomi will also operate a node that validates transactions coming through the Libra blockchain.
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