Peter Thiel-backed cryptocurrency brokerage startup Tagomi Systems Inc. has been acquired by Coinbase Inc. for an undisclosed price, the companies announced today.

Founded in 2017, Tagomi combines institutional-grade services with superior execution technology for digital assets and cryptocurrencies. Pitched as empowering institutional investors and active traders to trade across markets, Tagomi takes trade orders and places them across multiple exchanges to obtain the best prices.

Tagomi was in the news in March last year when it acquired a New York Department of Financial Services BitLicense, the 18th company to do so.

The talent behind Tagomi is deep. Greg Tusar, co-founder and chief executive officer, was formerly global head of electronic trading at Goldman Sachs, while co-founder Jennifer Campbell was formerly with Union Square Ventures. Chief Compliance Officer Venu Palaparthi was previously a vice president of Nasdaq Inc., and General Counsel Dhawal Sharma has worked for the Investor Protection Bureau at the New York Attorney General’s Office and as a special counsel at the U.S. Securities and Exchange Commission.

Since the launch of its services 18 months ago, Tagomi is said to have become the platform of choice for advanced traders, hedge funds and family offices. Customers include Paradigm, Pantera, Bitwise, Multicoin, Electric Capital, Founders Found, Galaxy Digital, Morgan Creek Capital Management and Parafi Capital.

Coinbase said the acquisition bolsters its offerings for advanced traders and sophisticated crypto investors.

“The addition of Tagomi will round out our product suite for the fast-growing institutional trading market,” Coinbase said in a blog post. “It will allow us to offer custody, professional trading features and prime brokerage services on one platform, giving sophisticated investors the seamless, powerful trading experience they have come to expect in equities and FX markets.”

The acquisition is not Coinbase’s first. Coinbase acquisitions include blockchain tracking startup Neutrino srl in February 2019, as well as Keystone Capital Inc., Venovate Marketplace Inc. and Digital Wealth LLC in June 2016.

Tagomi had raised $28 million in venture capital funding. Along with Peter Thiel, investors included 9Yards Capital, CoVenture, Multcoin Capital, Dragonfly Capital Partners, Paradigm, Pantera Capital, La Famiglia and Fabric Ventures.

The acquisition is subject to customary closing conditions including regulatory approvals and is expected to close later this year.

Image: Tagomi