Securitize manages $38B with acquisition of MG Stover admin business

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Tokenization company Securitize has expanded its digital asset operations by acquiring MG Stover’s fund administration business, in a move the company said has significantly grown its assets under management and ability to serve institutional clients.

With the acquisition, MG Stover’s fund administration business has been absorbed into Securitize Fund Services, Securitize’s wholly owned subsidiary, the company disclosed.

Securitize Fund Services now manages more than $38 billion in assets across 715 funds.

Founded in 2007, MG Stover offers full-service fund administration spanning traditional financial industries like hedge funds, venture capital and private equity, as well as digital asset funds.

A Securitize spokesperson informed Cointelegraph that the acquisition pertains only to MG Stover’s fund administration business and not the company as a whole.

In an emailed statement to Cointelegraph, Securitize co-founder and CEO Carlos Domingo said, “The MG Stover acquisition significantly strengthens our institutional offering by adding one of the most experienced digital asset fund administration teams in the industry to Securitize Fund Services.” He continued:

“Legacy fund administrators were never designed for the speed, complexity, or global reach of digital assets. Their systems struggle with the pressure of 24/7 markets, and they weren’t built to handle stablecoin flows or real-time settlements.”

Securitize is one of the largest real-world asset (RWA) tokenization companies, having issued more than $3.3 billion in onchain assets, most notably the BlackRock USD Institutional Digital Liquidity Fund, also known as BUIDL.

BUILD currently has nearly $2.5 billion in assets, according to industry data.

BUIDL leads the booming market for tokenized US Treasurys. Source: RWA.xyz

Related: VC Roundup: 8-figure funding deals suggest crypto bull market far from over

Tokenization market heats up

Tokenized RWAs are a rapidly expanding segment of the blockchain industry, attracting both traditional investors and crypto-native users.

RWA growth has defied the broad downtrend in the cryptocurrency market, with the total value of onchain financial assets surging 11.2% to $21 billion over the past 30 days, according to RWA.xyz.

Amid the tokenization wave, Securitize recently partnered with Ethena Labs to create a new blockchain for the RWA economy. The forthcoming Converge blockchain will allow retail and institutional investors to access tokenized assets and decentralized finance applications.

Meanwhile, the Mantra blockchain recently unveiled a $109 million ecosystem fund to bootstrap startups building across the RWA and DeFi economies.