Tagomi Systems

The company's core business revolves around providing prime brokerage services to sophisticated crypto investors, such as hedge funds, family offices, and active traders handling large transactions. Instead of operating its own exchange, Tagomi’s platform connects to numerous large digital asset exchanges, acting as a smart order router. This model allows clients to execute large trades across multiple venues from a single account, aiming to secure the best possible pricing and minimize market impact. The platform employs advanced algorithms and data analysis to determine optimal trade execution strategies. Revenue was primarily generated through trading fees, calculated as a small percentage of the trade value. Beyond trade execution, Tagomi’s end-to-end solution included post-trade reporting, one-click settlement, and custodial solutions through partnerships with best-in-class custodians.

A significant milestone for Tagomi was securing a BitLicense from the New York Department of Financial Services in March 2019, which authorized its operations in the state and marked it as only the 18th company to receive one. The firm successfully raised $28 million in venture capital from prominent investors, including Peter Thiel's Founders Fund, Pantera Capital, and Multicoin Capital. In May 2020, Coinbase announced its acquisition of Tagomi for a sum reported to be between $75 and $100 million, intending to integrate Tagomi's platform to form the foundation of its institutional trading business, Coinbase Prime. The acquisition represented a strategic move by Coinbase to bolster its offerings for professional investors and absorb Tagomi's specialized talent and technology. Keywords: electronic brokerage, digital assets, cryptocurrency trading, prime brokerage, institutional investors, smart order routing, algorithmic trading, best execution, crypto liquidity, Greg Tusar, Jennifer Campbell, Marc Bhargava, Coinbase acquisition, crypto custody, trade execution, market infrastructure, hedge funds, family offices, large-scale crypto trades, BitLicense