New York based crypto prime broker, Tagomi has announced that it is joining Facebook’s Libra Association which is governing the Libra stablecoin project, CoinDesk reports. This means that Tagomi is the 22nd member of the association and becomes the second one to become a member since the formation of the organization in October last year. The firm is expected to officially make the decision public before the end of the week.
We're excited to become a member of @Libra_ , sharing a common mission to expand financial inclusion. We believe the Libra project is poised to create a simple, inclusive, and global payment system that will empower billions of people left out of the global economy.
— Tagomi (@tagomisystems) February 26, 2020
Tagomi became the latest firm to join the organization after online platform shopify joined the association last week. The association members are expected to contribute for the Libra Reserve to a tune of at least $10 million. The reserve will hold all the assets which will support the cryptocurrency.
The entry of Tagomi into the association comes after various renowned firms left the organization with the recent one being Vodafone. The firm stated that it intended on concentrating on its own virtual based payment system, M-Pesa.
Before the association was officially created, various payments companies such as Visa, Stripe, Mastercard, PayPal among others announced that they were pulling out of the group. Majority of industry analysts associated this withdrawal to pressure from the regulatory authorities.
According to Cointelegraph, Tagomi was started by ex Union Square Ventures executive Jennifer Campbell two years ago and has since raised $28 million so far. This makes the $10 million contribution for the Libra Reserve a high amount for a startup.
However, the firm serves high profile crypto clients such as Pantera, Electric Capital and Galaxy Digital. Therefore, it should be able to raise the contribution with much ease.
As a holder of BitLicense from the New York State Department of Financial Services, Tagomi prides itself as one of the few companies in the crypto industry that can serve the New York crypto worshippers.
Tagomi believes that the advent of Libra stablecoin will become a useful tool that will eliminate the need for a dollar gateway. The firm hopes to collaborate with other members in the development of a strong payment system that can be used in all corners of the world.