Securitize, a tokenization company, purchases MG Stover's fund administration service.
In the rapidly evolving digital asset fund administration sector, two heavyweights are making their mark - Apex Group and Securitize.
Apex Group, a leading global asset services provider, managing over $3.5 trillion in assets, has expanded its operations into blockchain-based digital asset services. Through strategic acquisitions like Tokeny, Apex has strengthened its tokenization capabilities. The company offers a Digital 3.0 platform for the technical issuance, administration, and distribution of tokenized assets, catering to institutional clients aiming to bring traditional funds on-chain.
Securitize, on the other hand, has been a pioneer in tokenization and digital securities issuance. The company provides end-to-end solutions for asset tokenization, compliance, and investor management. Notable backers include Morgan Stanley, Sony, Nomura, MUFG, and BlackRock, which invested in Securitize as part of last year's $47 million funding round.
Securitize has been involved in the issuance of $3.3 billion in tokenized assets, and it claims to be the largest digital asset fund administrator. The company has expanded its services through acquisitions, including MG Stover's fund administration service, transfer agency business, broker dealer, and ATS arm. Securitize also plans to launch its own blockchain, Converge, in collaboration with stablecoin issuer Ethena.
BlackRock's BUIDL accounts for almost three quarters of the $3.3 billion in tokenized assets issued by Securitize. Securitize Fund Services now administers $38 billion in assets across 715 funds. The company has also expanded distribution to financial advisers with the acquisition of OnRamp in 2023.
While Securitize is known for digital asset fund administration, Apex currently appears more prominent in integrating tokenization with large-scale fund administration and custody services demanded by traditional financial institutions. This competitive landscape suggests that Apex leads in scale and institutional integration, offering comprehensive fund administration combined with blockchain tokenization services.
On the other hand, Securitize is a specialist provider focusing primarily on digital asset issuance and compliance solutions. Apex’s acquisition strategy and partnerships position it as a broad service platform bridging conventional and digital asset management, likely making it a stronger competitor in the digital asset fund administration sector for large-scale institutional clients, compared to Securitize.
As the convergence between TradFi and DeFi continues to accelerate, both Apex Group and Securitize are poised to play significant roles in shaping the future of digital asset fund administration.
[1] Ledger Insights. (n.d.). Apex Group acquires Tokeny Solutions. Retrieved from https://ledgerinsights.com/apex-group-acquires-tokeny-solutions/
[2] Ledger Insights. (n.d.). Apex Group partners with SkyBridge Capital to tokenize $300 million of hedge fund assets. Retrieved from https://ledgerinsights.com/apex-group-partners-with-skybridge-capital-to-tokenize-300-million-of-hedge-fund-assets/
[3] Ledger Insights. (n.d.). Ethena raises $100 million to scale its stablecoin offering. Retrieved from https://ledgerinsights.com/ethena-raises-100-million-to-scale-its-stablecoin-offering/
- Apex Group, with its strategic acquisitions such as Tokeny, leverages technology to expand blockchain-based digital asset services, offering insights into the technical issuance, administration, and distribution of tokenized assets for business clients seeking to bring traditional funds onto the blockchain.
- Securitize, a pioneer in tokenization and digital securities issuance, serves as a specialist provider focusing on asset tokenization, compliance, and investor management. The company's expansion through acquisitions and strategic partnershipshas propelled it to become the largest digital asset fund administrator, managing over $38 billion in assets across 715 funds.
- As the intersection of traditional finance (TradFi) and decentralized finance (DeFi) accelerates, technology companies like Apex Group and Securitize are poised to provide valuable insights and solutions in the digital asset fund administration sector, thereby shaping the future of finance and business.
