The news was reported in a blog post by Circle that stated SeedInvest was being acquired as it seeks to enable startups to issue security tokens using blockchain, while providing customers with greater access to invest in cryptocurrencies.
Deal terms were not revealed. The deal will require FINRA approval.
Circle has notably received the backing of Goldman Sachs.
In early 2018, Circle acquired crypto exchange Poloniex.
It has also been reported that Circle is seeking a banking license.
According to Circle, they have signed a definitive agreement to acquire SeedInvest. The acquisition will potentially accelerate their strategy of “delivering a token marketplace that enables businesses and individuals to raise capital and interact with investors using open crypto rails and infrastructure.”
Circle said it aims to “raise the bar for the crypto industry” and is embracing security tokens and the existing regulatory regime.
The acquisition is expected to aid companies to more efficiently raise capital through a regulated platform while providing investors with secondary market to trade digital assets.
“The SeedInvest team brings unique expertise and experience to help drive this vision forward. SeedInvest will add 30 team members to Circle’s New York location, a comprehensive services offering for raising capital, and a long history of working closely with regulators on innovations in private capital formation,” stated Circle.
Speaking to Bloomberg, Circle Chief Executive Officer Jeremy Allaire stated:
“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.”