Over the past eight years, Coinbase has built one of the most trusted names in crypto by providing clients with industry-leading trading and custody platforms. Today, we’re at an inflection point in the industry, with some of the world’s top hedge fund and macro investors entering the space and searching for the right infrastructure through which to engage with crypto. This is why we’re excited to announce that we’ve agreed to acquire Tagomi, the leading crypto prime brokerage platform. The acquisition will bolster our offerings for advanced traders and the most sophisticated crypto investors.

Coinbase continues to explore support for new assets

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. This has led us to build advanced features such as margin trading for institutional investors and new tools to help investors segregate their trading strategies. Most recently, we expanded Coverage for larger clients by adding Brett Tejpaul as Head of Institutional Coverage to our leadership team.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.

Since launching 18 months ago, Tagomi has become the platform of choice for many advanced traders, hedge funds, and family offices, including well-known names such as Paradigm, Pantera, Bitwise, Multicoin, and many more. The company has also built out an executive team with a rare blend of traditional financial services and crypto experience, led by co-founders Greg Tusar, Jennifer Campbell, and Marc Bhargava. The Tagomi bench brings experience from leading firms like Goldman Sachs, Citadel, KCG, Tower Research, and USV.

In short, I think over the next decade we’ll see a blockchain, that is both more scalable and includes privacy features, reach about 1B users by the end of the decade (up from about 50M at the start of the decade). Adoption will happen both in emerging markets, where the financial systems are most broken, and from a crop of new crypto first startups producing products people want. By the end of the decade, most tech startups will have a crypto component, just like most tech startups use the internet and machine learning today.

As a bonus final item, my friends Olaf Carlson-Wee and Balaji Srinivasan estimate that at a price of $200,000 per Bitcoin, more than half the world’s billionaires will be from cryptocurrency. Whether you think this is a good thing or a bad thing, it means there will be more pro-technology people with access to large amounts of capital in the 2020s.

We’ll see how many of these predictions turn out to be true. By shifting cryptocurrency from being primarily about trading and speculation to being about real world utility, the 2020s will see a huge increase in the number of people holding and using cryptocurrency. By shifting cryptocurrency from being primarily about trading and speculation to being about real world utility, the 2020s will see a huge increase in the number of people holding and using cryptocurrency, and start to really move the needle on global economic freedom.

Leave A Comment

Your email address will not be published. Required fields are marked *