Circle has mooted the plan to acquire SeedInvest, a feat that will allow the company to transact with startups better. Circle has been a leader in the crypto world, having a huge financial and partner backing. The company is known widely for its great vision for the crypto world as a whole. The acquisition of SeedInvest will give Circle customers much more flexibility when trading digital tokens.
The Acquisition Is Big News
SeedInvest has been at the forefront when it comes to giving investors access to prospective startup companies. Even though investors from around the world are welcome by this platform, there are a number of requirements that they have to meet before they can invest. This is so because the company is regulated by the US SEC. The acquisition of SeedInvest by Circle will be profound if it will be approved. The markets will have a formidable choice for investment in a security token of choice.
There are many investors in the market who are currently dealing with a market that is rather chaotic and unpredictable. The presence of a company that would allow for the tokenization of various assets will thus add a lot of confidence to investors. The challenges that are commonly faced by investors who go through banks in order to invest will be largely avoided. Both the market and the company are thus upbeat about the new development.
According to Circle’s CEO, Jeremy Allaire, the company has been working with regulators to see how the process of raising capital would be made easier. The hope for the company, therefore, is that their new model will inject energy into the industry and make crypto securities the go-to asset for investors. The market has previously been very skeptical on tokenized securities due to regulatory issues. The presence of SeedInvest would definitely remove the skepticism.
Circle Represents a Trend
Indeed, Circle will be a pioneer when it successfully acquires SeedInvest. This is not to mean that it is the only company that has considered going this direction though. Other platforms in the crypto world have mooted plans to acquire broker-dealer platforms. Coinbase is among those that are also seeking to list and sell cryptocurrencies via the acquisition of broker-dealers. Coinbase has recently acquired a number of companies in order to be compliant with regulations.
The President and COO of Coinbase, Asiff Hirji, commented about the company’s moves by indicating that the company was in the process of operating a broker-dealer. He indicated that their recent acquisitions were geared on bringing the company to the terms set by regulatory bodies like the US SEC and the FINRA.
There is an undeniable growth of tokenization of securities. Many companies in the crypto world are thus seeking to benefit from this growth. Both Circle and Coinbase are just a sample of companies that have taken the early moves towards profiting from the tokenization of securities. As the financial and capital markets continue to evolve, the way money is raised will change a lot and companies that position themselves in the middle of the change will benefit immensely.
