Digital asset broker Tagomi will be joining the Libra Association, the governance body of Facebook’s Libra stablecoin, reported TechCrunch. A formal announcement is expected soon, but Libra has not yet confirmed it.
Chicago-based Tagomi is a prime brokerage for crypto-assets and has developed a platform for large investors to access cryptocurrency. The firm has raised $28 million to date, according to Crunchbase.
Tagomi joins Libra less than a week after the e-commerce platform Shopify was onboarded.
Libra suffered a setback after some high-profile members such as Mastercard, Visa, eBay, PayPal, Mercado Pago, and Stripe dropped out of its governance body.
When new members join Libra, they have to invest $10 million towards helping the platform development.
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
While Libra is marketed as a decentralized global cryptocurrency with a focus on financial inclusion, some have questioned these credentials. Mastercard CEO Ajay Banga previously said: “It went from this altruistic idea into their own wallet. I’m like: ‘this doesn’t sound right’.” He also expressed concerns over anti-money laundering and the business model.
Libra is facing headwinds on multiple fronts, particularly from governments and regulators who believe the stablecoin may threaten existing financial systems. Many have attributed the high-profile exits mentioned to concern over attracting too much attention from regulators.
Meanwhile, last week, the Financial Stability Board (FSB) sent its recommendations to the G20 for regulating stablecoins. Addressing cross-border payment challenges is at the top of the list for FSB.
With Tagomi expressing its intention to join, Libra will have 22 members. Currently, the Libra website shows the following members:
Payments: PayU (Naspers’ fintech arm)
Technology and marketplaces: Facebook/Calibra, Farfetch, Lyft, Spotify AB, Uber Technologies, Inc., Shopify
Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited
Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures
Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking