Global crypto finance company, Circle’s co-founders Sean Neville and Jeremy Allaire jointly conveyed in a blog dated 04 March about Circle’s closure of SeedInvest acquisition.
The duo commenced the discussion by highlighting Circle’s desire to acquire SeedInvest, which finally materialized after getting regulatory approval from FINRA. SeedInvest was introduced as a leading equity crowdfunding platform in the US and the operator of a registered broker-dealer.
While warmly welcoming the SeedInvest employees, startups and investors, the duo cited –
“The acquisition is a further step toward realizing our vision of a more open, global, connected, and inclusive financial system. As a crowdfunding pioneer in the United States, SeedInvest helped to shape the JOBS Act. Today they are at the forefront of enabling startups to raise capital directly from investors over the internet.”
The duo captured the essence of this embrace as paving the way for capital creation aimed at startups and upcoming companies. Intermediate retail investors are benefited from investing in tech-based private companies associated with Circle and SeedInvest.
Sean and Jeremy shared a core idea that may be the backbone of several financial firms. The idea was that by having a healthy amalgamation of new frontiers in cryptocurrencies and blockchain with traditional financial systems, there is a better gain in terms of services.
Sean and Jeremy emphasized the aspect of tokenization. The duo stressed that with the ability to tokenize financial assets, it would allow sourcing of capital to fledgling companies. Investment opportunities for the general public would also expand.
The duo continued on the pros of asset tokenization touching upon features of private equity. They foresaw dividend payouts, voting, governance and other economic features getting steadily virtualized. There was a mention made wherein businesses would be able to build better relationships with customers by leveraging the right tokens.
The duo commented on the diversity of the SeedInvest team, quoting that more than 300 team members are now a part of Circle. This number is overshadowed by the more than 8.5 million global customer base and more than 1000 institutions.
Sean and Jeremy concluded in their blog that SeedInvest would remain unchanged with their mode of work but would receive additive support. Circle would explore the new vistas facilitated by tokenization. Circle would be working hand-in-hand with regulators in the US like SEC and FINRA while studying the organic growth of private capital market products.
Circle had earlier made news by being tenacious despite the crypto downturn. Circle had recorded substantial cryptocurrency trades through its over-the-counter (OTC) trading desk. Circle was also noted to provide liquid funds to the various stakeholders of the crypto community.