SeedInvest By Way Of Circle Gets Approval From FINRA For Alternative Trading System Operation
SeedInvest Receives Approval From FINRA To Operate As An Alternative Trading System
SeedInvest, an equity fundraising platform that was recently acquired by Circle, has just received approval to operate as an alternative trading system (ATS). The information was released by the company and reported by The Block on April 26.
Circle’s SeedInvest Receives FINRA Approval To Operate As ATS
The platform has been purchased by Circle back in March and it will now allow users to trade shares from startups after it received FINRA approval to operate as an Alternative Trading System. Finra is the Financial Industry Regulatory Authority that regulates business between brokers, dealers and investing public in the United States.
SeedInvest is the first equity crowdfunding platform that receives a FINRA approval to operate as a secondary trading marketplace. During a conversation with CoinDesk, a spokesperson for patent firm Circle explained that this is a very important step towards realizing the vision of tokenized securities.
Meanwhile, the CEO of Circle, Jeremy Allaire, explained that the firm was searching to tokenize securities when it made a bid for SeedInvest back in 2018. He said that securities in the crypto market are going to become a major category of securities and that, ultimately, every business is going to adopt.
The post reads as follows:
“We believe we are in the early stages of a much broader transformation of global capital markets, and that we will see mature, internet-based capital markets emerge that give companies ranging anywhere from the seed to growth stages more ways to raise capital, as well as much broader base of investors access to invest in those companies.”
A few weeks ago, reports showed that Circle was seeking funding in order to keep expanding in the market. The firm has also secured an investment from Goldman Sachs.