Crypto brokerage firm Tagomi has become the latest company to be approved to operate in New York under the so-called BitLicense. The Peter Thiel-backed startup was given the green light from the Department of Financial Services (DFS) this week, which will allow them to begin working with institutional investors.
The brokerage, which specifically targets regulated institutions for investment in digital assets, had worked through a seven-month application process to gain the approval of the regulator.
The grueling application process sets a high bar for would-be licensees, including the state department’s investigations into business processes, anti-money laundering and cybersecurity, amongst others.
The company, founded by trio Jenn Campbell, Greg Tusar, and Marc Bhargava, has been raring to go, with a number of clients reportedly standing by to begin investing in crypto products.
Formerly of Goldman Sachs, Tagomi co-founder and CEO Greg Tusar said the firm already had a list of clients in New York waiting to do business with the exchange. He noted, “The number of clients that opens up in New York is quite a substantial opportunity. We definitely have a backlog of clients that we would like to onboard that we were waiting for this approval to move forward with.”
In gaining the BitLicense, Tagomi becomes the 18th firm to have been approved to operate in the state of New York as a crypto brokerage.
Welcoming the latest approval, Department of Financial Services Acting Superintendent Linda Lacewell said Tagomi’s inclusion would ensure a broader choice for institutional investors in the state.
Lacewell said in a statement: “The Department’s approval of Tagomi’s virtual currency and money transmitter licenses provides consumers with more choice and more protection in a continuously evolving global financial services marketplace.”
The news follows Tagomi’s latest funding round which saw the firm secure an additional $12 million, capital the exchange intends to use to add new features to its platform, such as short selling and margin trading.
The brokerage has also received the backing of Peter Thiel’s Founders Fund, Pantera Capital and Paradigm, raising a total of $27.5 million to date.
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