The popular large scale cryptocurrency firm Circle has closed its planned transaction on the investment company SeedInvest, completing an acquisition that took several months.
Founded in 2012, SeedInvest has been working in the investment industry since its inception. As a platform that connects early-stage startups to investors, it has gained popularity in the business sector.
Whereas, Circle has been in the cryptocurrency world since 2013, and has raised no less than $250 million in investments. Backed by investors such as Goldman Sachs, it has established itself as a major player by offering cryptocurrency brokerage and related services to retail investors and large scale corporations.
Circle made the announcement to acquire SeedInvest back in October 2018, expressing its intention to take corporate fundraising to the next level with the help of digital assets. Many thought that this was Circle’s way to break into initial token offerings on a corporate level.
With the acquisition now complete, Circle is all set to use SeedInvest’s established infrastructure to help fuel its plans in adding more offerings and services to its portfolio.
What Does This Mean for the Overall Cryptocurrency Market?
When Circle introduces its cryptocurrency capital plans through SeedInvest, it would make this mode of investment possible on a larger level. Rather than one-off instances limited to specific companies, early stage startups could seek to raise capital in a tokenized fashion.
It would also increase the usage and listing of tokens that are otherwise considered as securities. Such tokens in their current form create a lot of regulatory issues for their parent companies if they are not super-compliant with the nuances of financial law. Through SeedInvest, Circle’s offerings would make it easier for companies to issue security or investment tokens while operating under a legal framework.
The terms of the transaction were not disclosed, but it was mentioned by SeedInvest that it would keep operating with its existing services. The firm stated that the acquisition would not debase its service or quality for their many different users who have come to trust it for their capital raising needs.
Instead, the statement highlighted how SeedInvest would now have more resources to expand its operations in the future. It also noted how it would look at tokenization to improve accessibility in corporate fundraising.
