Securitize, one of the largest tokenized asset issuers, said it acquired MG Stover's Fund Administration Business on Tuesday, making its subsidiary Securities Fund Services the largest digital asset fund manager.
The MG Stover team will operate under Securitize Fund Services (SFS) and will strengthen its offerings within its facilities, the company said.
With the acquisition, SFS currently oversees $38 billion in assets under management across 715 funds, including Securitize's tokenized fund offerings such as BlackRock's $2.45 billion tokenized US Treasury Fund (BUIDL). Securitize offers an integrated suite of services including fund management, token issuance, securities companies, transfer institutions, and alternative trading systems (ATS).
The transaction illustrates the expansion of integration in the area of digital asset infrastructure, where companies are competing to build compliant platforms that reflect traditional finance but live on the blockchain rail. For asset managers, this means that they can issue tokenized securities, manage them, and trade them without leaving the ecosystem.
Carlos Domingo, co-founder and CEO of Securitize, said the acquisition “consolidates its role as the most comprehensive platform for institutional grade real-world asset tokenization and money management.”
Asset tokenization is perhaps the fastest growing digital asset sector. This is because global traditional financial companies and banks are increasingly using blockchain to move and manage equipment such as funds, bonds, credits and other. BCG and Ripple predicted the tokenized asset market to reach $18 trillion by 2033. However, Moody reports that rapid growth also carries risks, including lack of operational experience.
Read more: Tokenized Fund's rapid growth is accompanied by a red flag: Moody's
