Three Arrow's Su Zhu on the race to build a crypto prime broker

Episode 21 of Season 2 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Su Zhu, CEO and CIO of Three Arrows Capital.

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Last week, saw a deluge of prime brokerage news, capped off by Coinbase's announcement of its acquisition of crypto broker Tagomi.

After months of rumors surrounding the two-year-old firm, the deal became one of Coinbase's biggest acquisitions in a move to fill out its institutional business of trading and custody services. 

With the deal inked, Coinbase is one step closer to becoming a full-scale prime broker.

This week's episode features Su Zhu, crypto investor, market commentator and founder of crypto investing firm Three Arrows Capital — an early client of Tagomi. 

Zhu unpacked his thoughts on the recent deal, touching on some pain points, including the importance of neutrality in the prime brokerage world. The Coinbase deal leaves room for possible conflicts of interest, according to Zhu. 

The episode also explores:

  • Why Tagomi's neutrality as a prime broker could be questioned under Coinbase's ownership
  • The headwinds and tailwinds facing DCG's Genesis Trading and BitGo as they build out similar offerings
  • The type of trading strategies and opportunities a full-scale prime broker open up for crypto investors like Three Arrows
  • The reasons why Tether dominates Asian liquidity and doesn't have to worry about rivals taking its crown
  • How Binance messed up delisting FTX's leverage product, and how it speaks to a broader existential issue at the exchange

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Frank Chaparro covers the intersection of financial markets and cryptocurrency as Editor-at-Large. Since joining the publication in 2018 as its first reporter, he has played a key role in building The Block into a leader in financial journalism and research. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected]