SeedInvest Gains FINRA Approval as Alternative Trading System a Month After Circle Buyout
The regulatory endorsement allows users to trade startup shares after acquisition.
SeedInvest, the equity crowdfunding platform owned by crypto-friendly payment giant Circle, has gained approval to offer secondary shares trading, crypto industry news outlet The Block reported on April 26.
The platform, which Circle bought out for an undisclosed sum in March this year, can now allow its users to trade startup shares via its accreditation as an Alternative Trading System.
The company got the go-ahead from the United States Financial Industry Regulatory Authority (FINRA), a month after gaining initial regulatory approval.
At the time, Circle praised SeedInvest for its input in aiding the U.S. startup investment scene, notably through its assistance with the 2012 Jumpstart Our Business Startups (JOBS) Act.
“As a crowdfunding pioneer in the United States, SeedInvest helped to shape the JOBS Act,” a blog post read. It continued:
“Today they are at the forefront of enabling startups to raise capital directly from investors over the internet — creating new capital formation options for startups and growth companies, and giving average retail investors the opportunity to invest directly into innovative private companies.”
Circle, meanwhile, continues to see growth in various sectors of the crypto economy.
As Cointelegraph reported, the company’s over-the-counter trading desk for large-volume investors saw turnover of $24 billion in 2018.