Last year in October 2018, Circle announced a strategic agreement to acquire SeedInvest, a leading equity crowdfunding platform in the United States and a registered broker-dealer operator. Now, as of March 4th 2019, FINRA has officially approved the Circle’s purchase of SeedInvest.
FINRA is a not-for-profit organization authorized by Congress to protect America’s investors by making sure the broker-dealer industry operates fairly and honestly. SeedInvest is one of the United States’ largest crowdfunding platforms and Circle aims to utilize it to implement their vision of tokenized securities.
Circle aspires to bring the economic and technical breakthroughs of crypto assets and blockchain technology to the traditional forms of financial contracts such as equities and other securities. The firm believes that the tokenization of financial assets will unlock capital for growing companies and bring in new investment opportunities for people everywhere. As the industry matures more functions of private equity such as voting and governance, dividend payouts and other economic features will be tokenized.
SeedInvest will just continue to operate as they do today, but with an additional support behind the company. They will join the Circle’s team that consists of more than 300 people and global customer base of more than 8.5M individuals and more than 1,000 institutions. Together they will work closely with leading regulators such as the SEC and FINRA to fulfill the vision of a tokenized future.