Tagomi's Strategic Move: Joining the Libra Association in Crypto

Tagomi’s Big Leap

Tagomi, the New York-based crypto prime broker, has announced its entry into the Libra Association, officially becoming its 22nd member. Founded by Jennifer Campbell, a former associate of Union Square Ventures, Tagomi’s decision marks a significant step for a company that’s only two years old.

Financial Commitment and Growth

With a fundraising total of $28 million, Tagomi’s $10 million investment into the Libra Reserve is no small feat. This fund serves as a safety net for the assets backing the stablecoin. Despite being a startup, this financial commitment showcases their ambition and vision to navigate the complexities of the digital asset world.

Tagomi’s Value Proposition

On its website, Tagomi proudly states, “Executing large orders of digital assets is really hard. Tagomi makes it simple.” This straightforward approach resonates with some of the biggest names in crypto, such as Galaxy Digital, Pantera, and Electric Capital, who utilize Tagomi’s services.

Licensing and Regulation

Holding one of the coveted BitLicences from the New York State Department of Financial Services is a significant achievement for Tagomi. This licensing allows the firm to serve residents in one of the most regulated states for financial operations—New York. With the ever-evolving landscape of crypto regulations, this license positions Tagomi favorably against potential obstacles.

Libra Association: Controversies and Challenges

While Tagomi’s entry into the Libra Association might seem promising, the association itself has faced tumultuous times. Several initial backers, including well-known companies like Vodafone, Visa, Mastercard, Stripe, PayPal, and eBay, have stepped back due to increasing regulatory scrutiny. This has left observers questioning the future and stability of the association and the project as a whole.

What This Means for Tagomi

For Tagomi, aligning itself with a Facebook-backed stablecoin could be a strategic move. By adopting the Libra stablecoin, Tagomi could reduce its reliance on traditional fiat gateways, offering clients a more seamless experience in digital asset execution. This transition might reflect a growing trend in the financial ecosystem: the shift towards a more digital-friendly future.