Crypto Brokerage Tagomi Granted BitLicense by New York DFS
Peter Thiel-backed crypto broker Tagomi granted 18th BitLicense in NYC, along with traditional state money transmission license.
Tagomi Trading LLC (a subsidiary of Tagomi Holdings Inc.) has been cleared to do business in New York City, after being granted a BitLicense by the city’s Department of Financial Services (DFS).
As per the press release issued by the NYDFS, the New Jersey-based Tagomi (which is the 18th company to receive a BitLicense) is an institutional-level, investor-focused cryptocurrency trading platform which executes trades across varied liquidity venues. Owing to differing prices across crypto exchanges, Tagomi places trade orders across multiple exchanges, in order to find the lowest prices.
In addition to the BitLicense, NYDFS has also approved a money transmission license for Tagomi. In order to obtain both licenses, Tagomi was required to provide answers to DFS questions regarding its cyber security measures and anti-money laundering checks. Following the approval from the DFS, Tagomi is now authorized to “engage in money transmission and to offer trade routing and order execution services for non-securities virtual currencies, including Bitcoin, Ether, Bitcoin Cash and Litecoin”.
“We are excited that DFS has approved our application as New York's first agency brokerage for virtual currencies,” said Tagomi Trading LLC CEO and co-founder Greg Tusar (who previously served as global head of electronic trading at Goldman Sachs). “… we look forward to expanding our presence with New Yorkers. We appreciate the DFS's thorough review and careful approach to virtual currency market participants to make for a more transparent and equitable virtual currency landscape.”
Acting Financial Services Superintendent Linda A. Lacewell also stressed the DFS’ continuing commitment to “fostering innovation and strengthening the competitiveness of New York’s burgeoning virtual currency sector”, adding that the two licenses approved for Tagomi would ensure that consumers have “more choice and more protection in a continuously evolving global financial services marketplace”.
Tagomi’s BitLicense approval comes in the wake of a recent $12 million funding round by parent company Tagomi Holdings, for the purpose of offering prime brokerage services such as margin trading, lending, and shorting. To date, the company has raised a total of $27.5 - $28 million, with investors including the Paradigm Fund, Peter Thiel’s Founders Fund, and Pantera Capital.
In addition to Tagomi, the BitLicense (which has seen its fair share of controversy) has also been granted to companies such as Coinbase, Gemini, Coinsource, Ripple, and Square.