Changes are happening in the financial sector at an accelerating pace. Circle, the cryptocurrency firm, is launching a token marketplace. Its recent acquisition of SeedInvest further confirms this course of action. The new platform has not yet received an official launch date.
Circle is improving is position in the cryptocurrency industry. Acquiring SeedInvest is a remarkable yet crucial decision. This new acquisition allows the firm to create a regulatory-approved token marketplace. SeedInvest is registered with the SEC and Finra as a broker-dealer. Circle can use this existing “registration” to launch the new venture accordingly.
Another Step Forward for Circle
According to Circle, SeedInvest checks all of the right boxes for venturing into regulated crowdfunding. The next logical step is seeking regulatory approval for crypto assets and tokens to raise capital and provide end-to-end services. It will be a different take on initial coin offerings, albeit in a regulated manner.
Circle CEO Jeremy Allaire adds:
“This was a company who had been at the forefront of collaborating with government to figure out how to make it possible to innovate in the way people raise capital. Crypto securities are going to become a major new category of securities that ultimately every business is going to adopt, just like every business has a website.”
The bigger question is how the SEC will look upon this platform. More specifically, the SEC has not taken kindly to token-trading platforms so far. Considering how tokens and coins are often treated as securities, which causes a lot of regulatory friction. SeedInvest’s strong record for governance and compliance should help move matters along.