SeedInvest, Circle’s equity crowdfunding platform, announced that FINRA has approved the operation of an Alternative Trading System (ATS) for secondary equity trading launched through its primary market platform. Once launched, on the secondary market after initial investment, SeedInvest will be able to allow investors to trade their start-up shares. Today’s announcement marks an industry milestone as SeedInvest is the first U.S. equity crowdfunding platform to receive FINRA approval allowing secondary securities trading through an ATS, in addition to raising capital in primary markets.
The broader mission of Circle is to empower individuals and businesses to share and create value globally more easily. A significant part of that mission is to open up ways that entrepreneurs and startups can raise capital from a broad base of both accredited and unaccredited investors directly on the internet. But the lack of exchanges and marketplaces for secondary market trading and liquidity of private securities has been a critical missing piece on private capital markets.
Over the past few years, experiments in private capital formation and secondary liquidity have witnessed an explosion, with blockchain-powered digital assets becoming a major new asset category and market technology systems. We believe that 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 emerging that give businesses ranging from seed to growth stages more ways to raise capital, as well as a much broader base of investors access to invest in these businesses and opportunities to trade these assets.
The newly approved ATS from SeedInvest is a significant step in that direction, and we are excited to see how this can evolve as we continue to iterate and experiment with creating a more efficient, global and democratized financial system for businesses and individuals alike.
This milestone also underlines the long-term commitment of both Circle and SeedInvest to work closely with regulators to build neighborhood.
SI Securities, LLC dba SeedInvest, an affiliate of Circle Internet Financial Limited, and a registered broker-dealer, and FINRA / SIPC member, located at 116 W Houston Street, 6th Floor, New York, NY 10012 conduct all securities-related activities. This communication is for information purposes only and should not be considered as a recommendation of any financial product, or an offer to sell or as a request for an offer to buy. Investments are offered only through definitive transaction documents, and before investing any potential investor should carefully read such documents, including all risks. Start-up investments involve a high level of risk and investors who are unable to hold an investment for the long term (at least 5-7 years) or afford to lose their entire investment should not invest in startups.