Cryptocurrency unicorn Circle has recently made an announcement about closing the acquisition of SeedInvest, an equity crowdfunding company. The crowdfunding pioneer will continue operating in a usual way after its employees join the 300-strong Circle team.
Making fundraising easier
As reported by U.Today, the deal took place back in October 2018, but Circle had to get the green light from FINRA to see it through. SeedInvest is one of the leading equity fundraising platforms in the US that allows innovative businesses to raise capital online with the help of run-off-the-mill retail investors. Because of the partnership with Circle, SeedInvest will support multiple cryptocurrencies, including tokenized securities.
The tokenization trend
Tokenization of traditional financial assets will bring more investors to the market by eliminating multiple limitations. Circle predicts that more function of private equity, such as dividend payouts, will be eventually undergo partitioning into tokens. On top of bringing more capital to fledgling companies, tokenization will also improve the way businesses interact with their customers.
It is worth noting that tokenization has already become a pervasive trend in the crypto space. Earlier, Circle CEO Jeremy Allaire himself claimed that everything would be tokenized in a matter of years.