Goldman Sachs-backed cryptocurrency firm snaps up new business

Circle has been shopping…

by Manoj Sharma for CNR

Backed by Goldman Sachs, Circle is a cryptocurrency firm that has bought SeedInvest, an equity crowdfunding platform, as a part of its vision of a blockchain-based financial ecosystem.

A peer-to-peer payment technology firm, Circle, is betting big on cryptocurrencies and blockchain technology. Backed by banking giants such as, Goldman Sachs, Bitmain, Accel, Oak Investment Partners, and Pantera Capital, the company has now confirmed that it has acquired SeedInvest last week as part of its growth plan.

Circle has been making a fair few strategic decisions, including the acquisition of cryptocurrency exchange, Poloniex this year, the launching of US Dollar Coin, and now, the addition of SeedInvest.

CEO of Circle, Jeremy Allaire believes that within the next few years the current financial system will move to the blockchain. In an interview with CNBC, Jeremy said that “if we zoom out, there’s going to be this tokenization of everything”.

He added that “eventually these marketplaces will have tens of thousands, if not hundreds of thousands of assets — so the next piece was a broker dealer”.

According to Ryan Feit, the CEO of SeedInvest, the firm’s crowdfunding strategy is similar to how blockchain startups raise funds. He chipped in that “we’re chasing a similar vision of changing the way businesses raise capital. It’s a different form of enabling companies to raise money, and another form of alternative assets for investors.”

Despite the slowdown of the market, off the back of its acquistions, the start-up obviously believes in the long-term sustainability of the blockchain technology…