This announcement paves the way for the company to tokenize securities in the future. The deal, announced in October 2018, is now officially completed after Circle obtained approval from the self-regulatory organization FINRA. Terms of the acquisition were not disclosed. The entire SeedInvest team joined Circle, including the two co-founders. They also published a joint post on SeedInvest’s webpage, emphasizing that after the acquisition, the company will keep working as usual.
The tokenization of financial assets has the possibilities to unlock capital for growing companies and investment opportunities for people everywhere, according to the company’s representatives. Over time, more functions of private equity will be tokenized — including voting and governance, dividend payouts, and other economic features.
Tokenization will also create new opportunities for businesses to build better relationships with their customers by leveraging tokens linked to ecosystem behaviours.
SeedInvest was founded in 2012 to help smaller US companies raise capital. Over the seven years of its existence, the company led more than 220 fundraising campaigns with an average investment of USD 500,000, according to SeedInvest.
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