Tagomi Rollout Paves Way for Institutional Crypto Shorting
Crypto brokerage Tagomi released its borrowing and lending platform to the wider public, enabling investors to short cryptocurrencies like bitcoin and ethereum.
Tagomi’s COO Kevin Johnson told CoinDesk that its new platform addresses issues that stymie institutional crypto shorts.
Many large-scale investors could not short cryptocurrencies as rapidly as they might short an equity position because the existing borrowing process for crypto is too complex, Johnson said: “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.”