Circle Internet Financial Ltd, Cryptocurrency Financial Corporation took over the brokerage firm and equity crowdfunding platform SeedInvest. As per an announcement, the exact terms of the transaction were not disclosed.
SeedInvest, headquartered in New York, was set up in 2012 as an investment platform for startups. Since then, the company has raised funds for 220 companies with the help of more than 240,000 investors. The average investment is projected to be $500,000 through SeedInvest, while the major investment was $2,000,000.
Once the acquisition has been approved by the Financial Industry Regulatory Authority, Circle may expand SeedInvest’s presents to hold up cryptocurrencies, comprising tokenized securities and stable currencies.
In addition, companies could raise capital through a regulated platform, gain access to portfolios of private investors through Circle Invest, and offer liquidity to investors in the secondary market through the exchange of crypto-coins. CEO of Circle, Jeremy Allaire told Bloomberg in an interview.
Earlier this week, Circle introduced a new feature for its cryptocurrency investment application, Circle Invest, called Collections, which gives customers the opportunity to invest in one or more cryptocurrency asset collections, each one divided into, “Platforms, payments, and confidentiality.” After choosing a collection category, users can invest in the entire category at once.
In September, Circle launched a USD-supported digital token called USD Coin More than 20 companies are about to publicize their support to the USDC, while others can add ERC-20 trade via the open ERC-20 standard.
Circle was founded in 2013 by the Goldman Sachs giant of the Management and Investment Bank. The company offers four products, comprising Circle Trade, a cryptocurrency liquidity provider, that would produce more than $2 Billion a month and Circle Pay, a cash-based delivery service with a social messaging component.
Soon crypto securities will turn out to be a significant part of the new category of securities which will be adopted by every business ultimately.