Major crypto exchange Coinbase has acquired Tagomi, an institutional crypto brokerage, to fortify its institutional strength. Coinbase revealed the acquisition in a May 27 blog post.
Coinbase has seen a significant increase in institutional investors over the last 12 months. The recent Tagomi acquisition is necessary to ensure that Coinbase can properly cater to all of the traction it is receiving from its many institutional customers.
Coinbase, in the blog post, also says that the demand from these customers has caused “increased volumes” on its trading platforms and “tremendous growth” in the Coinbase Custody offering. Because of this, Coinbase introduced more features including margin trading, for institutional investors.
On acquiring Tagomi, Coinbase says the development will allow the exchange to offer a wider range of offers, on its platform:
“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.”
Back in February, Tagomi officially joined the Libra Association, which already had Coinbase as a member. Coinbase’s acquisition just might fortify its position in the Association.