Crypto Finance Grows Up: Tagomi’s New Tools Could Draw Institutional Investors Into The Crypto Market

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Amid signs that the crypto market is maturing, startups like Tagomi are building tools that look more like traditional financial technology

Photo credit: Paolo Testa

For institutional investors, one of the problems with crypto is that the size of the market is still small, making it difficult to make big trades. Recent daily trading volume was $19 billion, according to CoinMarketCap, although many say that data is grossly inflated. The Nasdaq alone trades more than $100 billion a day.

Tagomi’s tool hooks into about ten exchanges, pooling liquidity and making the assets accessible in one place. If a customer wants to buy $1 million in bitcoin, Tagomi might break that order up into thousands of smaller pieces and send them to different trading venues. Its algorithms look across exchanges for the lowest prices and largest supply of bitcoin, and they programmatically route the order, aiming for the lowest price. Tagomi makes money through commissions—it charges customers from 0.

 

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