Tagomi Trading LLC, a crypto brokerage startup has earned the New York Department of Financial Services (NYDFS) BitLicense. Notably, this is the 18th such license issued since the NYDFS finalized its controversial regulatory regime for virtual currency businesses in 2015.
According to an NYDFS press release on Wednesday, Tagomi has also awarded with a traditional state money transmission license. CEO Greg Tusar shares in a statement, that the approval makes Tagomi “New York’s first agency brokerage for virtual currencies,” implying that it will place trades on clients’ behalf in bitcoin, ether, bitcoin cash, and litecoin and look to fill their orders at the best prices available as quickly as possible.
“Our team of industry veterans has developed our order routing services with sophisticated clients in mind, and we look forward to expanding our presence with New Yorkers.”
In its latest funding round, Tagomi raised around $12 million to offer prime brokerage (i.e., high-touch) services to hedge funds investing in cryptocurrencies. The startup went live in December, with a total of $28 million raised overall.
Dhawal Sharma, the general counsel at Tagomi, said in a statement that the company will “prioritize transparency” with its services. This new virtual currency license, Tagomi joins the likes of exchanges Coinbase and Gemini; payments startups Ripple and Square; bitcoin ATM operators Coinsource and Cottonwood Vending; Genesis Global Trading and investing firm Robinhood.
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