“The future will be tokenized—financial assets of all kind will be turned into crypto tokens that unlock capital for growing companies and investment opportunities for people everywhere. This tokenization will increase liquidity to alternative asset classes like real estate and art.”
So we’re told in a statement announcing Circle has been given regulatory approval to acquire a crowdfunding platform SeedInvest.
“We believe that tokenizing startups can take things to another level by providing liquidity, enabling capital to flow across geographic borders, and paving the path for completely new types of capital formation. And startups are just the beginning,” says Ryan Feit and James Han, the two co-founders of SeedInvest who have now joined Circle.
“SeedInvest will continue to empower startups to raise capital through Reg D, Reg CF and Reg A+ and will provide both accredited and non-accredited investors with access to startup investments,” they say.
Just how much was paid for this acquisition is not clear, with Trustnodes awaiting a response, but Circle recently raised $250 million with their investors including Goldman Sachs, IDG Capital, Accel, CICC, General Catalyst, Bitmain and Jim Breyer.
The Financial Industry Regulatory Authority (FINRA), a self-regulatory agency for all securities firms doing business in the United States, has now just given them the green-light with Sean Neville and Jeremy Allaire, co-founders of Circle, stating:
“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 — creating new capital formation options for startups and growth companies, and giving average retail investors the opportunity to invest directly into innovative private companies.”
We’re told Circle’s team has now grown to more than 300 people with a global customer base of more than 8.5M individuals and more than 1,000 institutions.
“Circle will continue to work closely with leading regulators in the US such as the SEC and FINRA as it evaluates the evolution of private capital market products and services using crypto assets and blockchain technology,” a statement says.
The Grand Race: Coinbase v Circle v Binance
While many crypto investors might be feeling the pinch of the bear market, money is flowing in some crypto sectors.
Coinbase has been in a buying spree since last year with numerous companies and projects now under their umbrella.
Their vision is to provide a wholistic crypto one stop shop for financial aspects, with the crypto broker and exchange beginning to rapidly list digital assets.
Never wanting to be left behind, Circle made a big acquisition last year, scooping up Poloniex. Now they’re seemingly moving into the ICO-ing space, with a vision of opening access to securities tokens.
Binance, the cypherpunk exchange with some attitude appears to be playing a complex regulatory game that includes self-compliance regarding freezing hacked/stolen funds and so on.
They’ve recently made waves with their Binance Launchpad which has brought back 2017 memories with coins going sold in seconds.
The rest are not playing in what appears to be a mighty race towards setting-up the first global digital assets “stock” market where everything that can be tokenized is on sale.