Circle, the Goldman-Sachs funded crypto investment vehicle has been moving swiftly to become a dominant player in the crypto industry. The company in past 24 to 48 hours has made a couple of announcements that have added new ammunition to the company’s growth plans. According to the latest news reports Circle has added a new feature on their app named “Collections” and acquired the crowdfunding platform SeedInvest.
Circle acquires equity crowdfunding platform SeedInvest
As put forward in the company’s announcement, Circle Internet Financial Ltd. has acquired equity crowdfunding platform and broker-dealer SeedInvest. While the exact terms of the transaction were not disclosed, the deal still awaiting regulatory approvals from Financial Industry Regulatory Authority (FINRA), Once the acquisition is approved, it will reportedly enable Circle to expand SeedInvest’s offerings to support cryptocurrencies, including fiat stablecoins and issuing and offering tokenized securities.
Additionally, companies will reportedly be able to raise capital through a regulated platform, get access to retail investor portfolios via Circle Invest, and provide investors with secondary market liquidity on Circle’s cryptocurrency exchange. Circle CEO Jeremy Allaire told Bloomberg in an interview:
“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 company’s official medium channel mentioned,
“Circle’s vision is one of an open, global and connected digital economy built on crypto assets and blockchain infrastructure. A critical element of realizing this vision is building new ways for businesses, and ultimately individuals, to use crypto assets to more efficiently raise capital, manage investors and provide liquidity. Furthermore, Circle aims to continue to raise the bar for the crypto industry by embracing securities regulation as it applies to crypto and paving the way for security tokens.”
Circle adds a new feature “Collections”
Another update that came in from Circle was that it has recently added a new feature on its app that makes it a whole lot easier for new investors to find and learn about cryptocurrencies. This feature is called “Collections” and it allows users to invest in three “themes” of cryptocurrencies: platforms, payments, and privacy. The company, with this feature now, presents a simplified way for investors to focus their portfolio on multiple coins, according to a specific functionality of their choice. After choosing a collection category, users can invest in the entire category in one swoop. The various crypto assets in each collection are weighted according to their respective market caps. Circle’s “Collections” will also provide educational content so that users can make informed choices about their investments.
Circle is progressing at top speed to attain the number one position in the crypto world. All these strategic additions to the business make one feel that all of this is part of Circle’s larger plan to establish itself in all the potential avenues of the cryptocurrency space — from their own stablecoin, to a mobile investment platform, to a proper exchange, to even a crowdfunding aspect for startups.
Will Circle be the most diversified player in cryptocurrency space? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.