Brokerage firm Tagomi receives coveted Bitlicense

Startups • March 27, 2019, 11:49AM EDT
UPDATED: March 27, 2019, 11:56AM EDT
The Block

Paradigm and Pantera-backed Tagomi has become the first cryptocurrency brokerage to receive a coveted Bitlicense from New York state, which will enable the firm to offer a broad range of services around cryptoasset trading, custody and issuance.

Tagomi offers prime services on an agency basis for sophisticated investors of Bitcoin, Ether, and other digital assets. Earlier today the company announced their subsidiary, Tagomi Trading LLC, had received a Bitlicense and Money Transmitter License from the New York Department of Financial Services. Tagomi was founded less than a year ago. 

Tagomi’s Bitlicense is the fourteenth granted by the state agency and the first issued by Linda Lacewell, who assumed the position of NYDFS superintendent in March 2019. 

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Receiving a Bitlicense positions Tagomi for expansion and offers New York-based investors a compliant way to prioritize best execution when placing large trades.

According to NYDFS, a Bitlicense is required for any entity engaging in activities including:

  • Virtual currency transmission
  • Storing, holding, or maintaining custody or control of virtual currency on behalf of others
  • Buying and selling virtual currency as a customer business
  • Performing exchange services as a customer business
  • Controlling, administering, or issuing a virtual currency

About Author

Matteo joined The Block as a Research Analyst in January 2019. After graduating from Columbia University in 2017 Matteo launched CryptoChat, an industry-leading newsletter providing commentary and analysis on the latest developments in the blockchain world, with emphasis on the burgeoning Ethereum ecosystem. Before joining The Block, Matteo was also the founder of NashHash, an Ethereum-based platform for p2p game-theory games, an advisor to several early-stage blockchain-based projects, and an active investor across the crypto asset markets. Matteo's interests include the analysis of on-chain data, which has led to the creation of the Fee Ratio Multiple and Network Value to Aggregate Fee Ratio metrics, and the intersectionality of Open Finance protocols.

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