- Securitize has acquired MG Stover’s fund administration business, bringing its total assets under administration to $38 billion across 715 funds.
- The acquisition strengthens Securitize’s position as a comprehensive platform for real-world asset tokenization and fund administration.
- Securitize continues its growth strategy through acquisitions, having previously acquired broker-dealer, transfer agency, and financial adviser distribution businesses.
Securitize announced yesterday the acquisition of MG Stover‘s fund administration service, though financial terms were not disclosed. The deal expands Securitize Fund Services’ reach to $38 billion in assets across 715 funds, positioning the company as a major player in digital asset fund administration.
“Securitize’s acquisition of MG Stover’s Fund Administration business cements our role as the most comprehensive platform for institutional grade real-world asset tokenization and fund administration,” said Carlos Domingo, Co-Founder & CEO of Securitize. “This is a significant step in our growth, reinforcing our commitment to expanding our capabilities as we serve an ever-expanding cohort of asset issuers and investors.”
Expanding Service Portfolio
The tokenization firm already provides numerous services through its various subsidiaries, including tokenization, primary issuance, and transfer agent services. It holds broker-dealer and ATS licenses for secondary market trading and introduced a lending service using tokenized collateral last year. Securitize plans to launch its own blockchain called Converge in partnership with stablecoin issuer Ethena, aiming to create a settlement layer for real world asset (RWA) tokenization.
To date, Securitize has facilitated the issuance of $3.3 billion in tokenized assets, with BlackRock‘s BUIDL fund representing approximately three-quarters of that amount. Ethena, Securitize’s blockchain partner, holds $1.3 billion in BUIDL in its reserves for its USDtb stablecoin.
The company’s profile rose significantly when BlackRock partnered with it to issue the BUIDL tokenized money market fund. Prior to that, Securitize had already tokenized funds for KKR and Hamilton Lane. The firm’s investor base includes BlackRock, Morgan Stanley, Sony, Nomura, and MUFG, following a $47 million funding round last year.
Strategic Growth Through Acquisitions
The MG Stover acquisition continues Securitize‘s pattern of growth through strategic purchases. Previously, the company acquired its broker-dealer and ATS operations in 2020, a transfer agency business in 2022, and expanded to financial advisers by acquiring OnRamp in 2023.
With this latest acquisition, Securitize claims to have become the largest digital asset fund administrator. The company now faces competition from traditional finance fund administration firm Apex Group, which has been active in the digital asset sector and shares clients like Hamilton Lane with Securitize. As tokenization drives convergence between traditional finance and decentralized finance (DeFi), competition between these companies appears to be intensifying.
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