Securitize Acquisition Boosts Digital Asset Fund Administration and Institutional Tokenization

Securitize, one of the largest tokenized asset issuers, announced the acquisition of MG Stover’s fund administration business, making its subsidiary, Securitize Fund Services (SFS), the largest digital asset fund administrator with over $38 billion in assets under administration. The acquisition enhances Securitize's institutional-grade offerings by integrating services like fund administration, token issuance, brokerage, transfer agency, and an alternative trading system. The deal represents a growing consolidation in the digital asset infrastructure sector, where traditional finance is increasingly adopting blockchain technology for managing tokenized securities, bonds, funds, and other instruments. Notably, the move reinforces the prominence of institutional tokenization, as seen with BlackRock’s tokenized U.S. Treasury fund (BUIDL). This development highlights both the significant growth prospects of asset tokenization—projected to reach $18 trillion by 2033—and the inherent operational risks that come with rapid market expansion, as noted by Moody’s risk assessments.