New York Grants BitLicense To Crypto ‘Prime Broker’ Tagomi
The NYDFS or New York Department of Financial Services has reportedly granted its latest BitLicense to a crypto brokerage company. The latest startup to receive the said license is none other than Tagomi Trading LLC.
Tagomi Gets BitLicense
The announcement was made recently, suggesting that it would be the 18th BitLicense to be provided since the NYDFS decided to finalize its infamous regulatory regime for all digital currency firms back in 2015. Tagomi, on the other hand, has been given a traditional state money transmission license as well.
Greg Tusar, the CEO of the startup, said that the approval allows Tagomi to become the very first agency in New York to serve as a brokerage for cryptocurrencies. In other words, the firm will directly place trades on clients’ behalf in BTC, as well as other digital currencies (e.g. Bitcoin Cash, Ether, and Litecoin). From there, the firm will fill their orders at the best possible prices.
Tusar also went to add that the company is composed of industry veterans, all of whom have worked side by side in the crypto space. As such, they are able to develop the company’s very own order routing services. Interestingly, the executive claims that these services were designed with sophisticated clients in mind.
The CEO is confident that Tagomi will make a huge impact on the entire crypto space. Even more so, he looks forward to becoming a significant player, as they expand the company’s presence with New Yorkers.
The Concierge Service
The company managed to raise at least $12 million in an attempt to provide brokerage services directly to hedge funds investing in digital currencies. The startup launched back in December last year and, at that time, was able to accumulate funding of around $28 million.
According to Dhawal Sharma, the general counsel of the startup, Tagomi is going to prioritize the idea of having transparency in all of its services. By having a new digital currency license, the firm is going to be joining other players in the crypto space, such as Coinbase and Gemini.
Included in the list of companies with BitLicense are investing firm Robinhood, payments startups Square and Ripple, market maker Genesis Global Trading, and BTC ATM operators Cottonwood Vending and Coinsource.
In a statement, the acting superintendent of the NYDFS named Linda Lacewell reportedly reiterated all previous comments pertaining to the agency’s commitments. These were aimed at the idea of the agency trying to foster and strengthen the competition within New York’s crypto space.