Tagomi’s COO Kevin Johnson revealed that its new platform addresses issues that frustrate institutional crypto shorts.
Some large-scale investors couldn’t short digital currencies as quickly as they may short equity due to current borrowing process for crypto is excessively complex, Johnson stated: “It’s multiple steps, it’s a lot of work.”
“First, you have to either find an exchange that’s able to lend, or talk to one of the centralized lending counterparties, negotiate rates, settle that, borrow, and then you could get to be in the process of actually selling the coin short.”
Johnson stated this had been the most significant obstruction for institutional investors.
Co-founder Marc Bharvaga stated the service brings Tagomi closer to turning into a full-suite prime brokerage, which is the way institutional investors want to deal with their trading.
“Having a full prime brokerage functionality, which we now have through being able to do best execution, being able to custody, being able to lend, being able to short and there’s quite a few other things on the road map as we think about the [crypto] space,” Bharvaga stated.
Tagomi finished a $12 million funding round in March when co-founder Jennifer Campbell said at the time that it would extend its services to incorporate lending and shorting.