Securitize, a leading digital asset platform, has acquired MG Stover’s fund administration business to become the largest digital asset-focused fund administrator, overseeing $38 billion in assets across 715 funds.
The acquisition expands Securitize Fund Services’ offerings and brings its assets under administration to over $38 billion across 715 funds.
Securitization is a financial process that converts illiquid or irregular cash flows into liquid securities.
It involves packaging and selling these assets to investors, often in the form of bonds or notes.
This allows companies to free up capital for other uses while providing investors with a new asset class.
Securitization can be used in various industries, including mortgages, credit cards, and auto loans.
Securitize has acquired MG Stover’s fund administration business, making it the largest digital asset-focused fund administrator. The deal allows its subsidiary Securitize Fund Services to oversee $38 billion in assets across 715 funds, including ‘BlackRock‘s tokenized U.S. Treasury fund.’**
The acquisition highlights the growing consolidation in the booming digital asset tokenization space.
Digital asset tokenization is the process of converting physical assets into digital tokens, representing ownership and value.
This technology utilizes blockchain to create unique tokens, ensuring transparency, security, and efficiency.
Tokenization enables fractional 'ownership' , making it easier for investors to participate in high-value assets like real estate or art.
It also reduces costs associated with traditional asset management, such as paperwork and storage.
Companies are racing to build compliant platforms that mirror traditional finance but live on blockchain rails. For asset managers, this means they can issue tokenized securities, administer them, and trade them—without leaving the ecosystem.
Blockchain is a decentralized, digital ledger that records transactions across a network of computers.
It uses cryptography to secure and verify data, ensuring its integrity and accuracy.
This technology enables peer-to-peer transactions without the need for intermediaries, making it transparent, secure, and tamper-proof.
Blockchain's applications extend beyond cryptocurrency to supply chain management, voting systems, and identity verification.
With the acquisition, Securitize Fund Services now offers an integrated suite of services: fund administration, token issuance, brokerage, transfer agency, and an alternative trading system (ATS). This expands the company’s institutional-grade offerings and enhances its ability to support the growing demand for digital asset solutions.
Asset tokenization is perhaps the fastest-growing digital asset sector. Global traditional finance firms and banks are increasingly using blockchains for moving and managing instruments like funds, bonds, and credit. ‘BCG and Ripple project that the tokenized asset market will reach $18 trillion by 2033.’ However, the rapid growth also comes with risks, including operational inexperience, according to a Moody’s report.
Carlos Domingo, co-founder and CEO of Securitize, said that the acquisition ‘cements our role as the most comprehensive platform for institutional-grade real-world asset tokenization and fund administration.‘
