Circle, a U.S-based fintech firm has completed the acquisition process of SeedInvest in a bid to establish a robust token marketplace that would allow businesses as well as individuals to raise capital via open crypto rails and infrastructure, according to a blog post March 4, 2019.
Circle Officially Takes Over SeedInvest
After several months of waiting for regulators to greenlight the SeedInvest acquisition process, the deal has finally gotten the Financial Industry Regulatory Authority (FINRA) stamp of approval and the entire SeedInvest family of employees, startups and investors have now become a part of Circle Internet Financial.
Launched in 2013, the primary objective of the SeedInvest crowdfunding platform is to connect startups with high-net-worth individuals, family offices and venture capital firms through the internet.
With a global customer base of 8.5 million individuals and 1,000 institutions, serviced by a team of 300 employees, Circle has made it clear that the acquisition of SeedInvest is part of its mission to bring the economic and technical breakthroughs of cryptoassets and distributed ledger technology (DLT) to the world of traditional financial contracts such as equities and other securities.
Circle Believes Tokenization will Transform the Global Economy
It’s worth noting that security token offerings (STOs) have been touted as the next big thing in the blockchain industry, due to the fact that it makes it possible for real-world assets such as bonds, shares, and others to be split into blockchain-based tokens that can be purchased legally by interested investors.
Circle is not oblivious to this fact and the firm has predicted that it’s only a matter of time before all sectors of the global economy catch the tokenization fever.
“The tokenization of financial assets will unlock capital for startups and offer people viable investment opportunities,”
“With time, more functions of private equity will be tokenized, including voting and governance, dividend payouts and other economic features.”
Specifically, Circle has stated that despite the acquisition, SeedInvest will still maintain its original mode of operation but will now have additional support.
In February 2018, BTCManager informed that Circle had acquired Poloniex, a leading U.S.-based crypto exchange.
As reported by BTCManager on March 4, 2019, Circle is looking to raise a whopping $250 million through debt and equity to enable it to survive the prolonged crypto winter.