Securitize purchases fund administration services from MG Stover's tokenization business
Securitize, a pioneer in real-world asset tokenization, has been making waves in the digital asset fund administration sector. The company, known for its work with top-tier institutions like BlackRock and KKR, offers a full range of services from SEC-registered broker dealer functions to digital transfer agent and regulated Alternative Trading System (ATS) operations.
The sector is experiencing growth by acquisition and technology expansion as firms build proprietary blockchains to embed compliance, improve settlement speed, and offer custodial on-chain asset management services. This strategy reduces dependence on third-party networks and supports regulatory adaptability, which is critical given evolving digital asset regulations.
Securitize's latest move is the launch of its own blockchain, Converge, in collaboration with stablecoin issuer Ethena. Ethena holds $1.3 billion in BUIDL in the reserves for its USDtb stablecoin. This partnership aims to facilitate seamless, end-to-end solutions for financial institutions and asset managers.
BlackRock's BUIDL accounts for almost three quarters of the $3.3 billion in tokenized assets issued by Securitize. The company has also tokenized funds for KKR and Hamilton Lane, in addition to partnerships with BlackRock, Morgan Stanley, and several Japanese firms like Sony, Nomura, and MUFG.
Securitize's growth strategy includes a series of acquisitions. In 2020, the company acquired its broker dealer and ATS arm. With the latest acquisition, Securitize Fund Services now administers $38 billion in assets across 715 funds. The company also acquired MG Stover's fund administration service and OnRamp, expanding distribution to financial advisers.
Securitize's main competitors in the digital asset fund administration sector, particularly in the context of growth by acquisition and the convergence of traditional finance (TradFi) and decentralized finance (DeFi), include tZero, CoinList Services, CQS, and TrustToken. These companies similarly focus on regulated digital asset tokenization, fund administration, and bridging TradFi with DeFi ecosystems.
Strategic moves such as Securitize's use of blockchain oracles (e.g., Redstone) and partnerships to enable DeFi assets show the convergence between TradFi and DeFi, enabling traditional institutions to engage in decentralized finance through compliant tokenized channels.
Carlos Domingo, Co-Founder & CEO of Securitize, stated that the latest acquisition cements their role as the most comprehensive platform for institutional grade real-world asset tokenization and fund administration. The digital asset fund administration sector is expected to continue its growth and competition, with Ledger Insights reporting on the developments in this space.
- Securitize's latest acquisition of a fund administration service and OnRamp expands their distribution to financial advisers, now administering $38 billion in assets across 715 funds.
- Strategic partnerships, such as Securitize's collaboration with Ethena, aim to facilitate seamless, end-to-end solutions for financial institutions and asset managers, using tokenization and blockchain technology for real-world asset administration.
- The digital asset fund administration sector, driven by growth through acquisition and technology expansion, is witnessing increasing competition as companies like Securitize, tZero, CoinList Services, CQS, and TrustToken focus on regulated digital asset tokenization, fund administration, and bridging traditional finance with decentralized finance, providing valuable insights for the future of business and finance.
