Securitize purchases fund administration services from MG Stover's tokenization venture
In the rapidly evolving world of digital asset fund administration, two prominent players - Apex Group and Securitize - are making their mark. While each company has its unique strengths, their competitive landscape is defined by their distinct yet complementary service offerings.
Apex Group, a globally established fund administration and financial services provider, has been active in the sector for a few years. The company offers comprehensive back and middle office fund administration services, including fund setup, compliance, cash management, investor transactions, and regulatory hosting. Apex positions itself strongly in traditional and alternative asset classes, with a notable footprint in European fund administration, especially in Luxembourg [2][4].
Securitize, on the other hand, is primarily a digital asset platform focused on the entire lifecycle of digital securities. The company emphasizes tokenization and blockchain-enabled asset management, targeting innovators and digital-savvy asset managers looking for efficient, automated, and compliant digital asset fund administration.
The battle between Apex and Securitize in the digital asset fund administration sector is both direct and complementary. Apex serves as a broader traditional fund administrator, while Securitize specializes in digital asset tokenization and digital-native compliance workflows.
Securitize has high-profile backers including Morgan Stanley, Sony, Nomura, and MUFG. The company plans to launch its own blockchain, Converge, in collaboration with stablecoin issuer Ethena. Securitize has been involved in the issuance of $3.3 billion in tokenized assets, having tokenized funds for KKR and Hamilton Lane, some common clients with Apex.
Securitize's Co-Founder & CEO, Carlos Domingo, has led the company in acquiring its transfer agency business in 2022 and its broker dealer and ATS arm in 2020. The latest acquisitions, including MG Stover's fund administration service and OnRamp in 2023, have positioned Securitize as the largest digital asset fund administrator.
Apex Group, meanwhile, is known for its strong regulatory and geographic fund service capabilities. With a broad product offering, the company caters to various fund types, including UCITS and money market funds, indicating broad industry acceptance and regulatory experience [3].
In summary, Apex Group dominates traditional and broad-based fund administration globally, including digital transformation efforts but focusing mostly on established asset classes. Securitize leads in the digital asset tokenization niche with blockchain-based fund administration and investor management solutions. The competitive landscape is defined by these complementary strengths rather than purely head-to-head competition.
Ledger Insights reports the development.
References: [1] Ledger Insights. (2023). Apex Group versus Securitize: Who leads in digital asset fund administration? [online] Available at: https://ledgerinsights.com/apex-group-versus-securitize-who-leads-in-digital-asset-fund-administration/
[2] Apex Group. (2023). Apex Group. [online] Available at: https://www.apexfs.com/
[3] Securitize. (2023). Securitize. [online] Available at: https://securitize.io/
[4] Luxembourg for Finance. (2023). Luxembourg: A leading European fund domicile. [online] Available at: https://www.lff.lu/en/home/industries/finance/fund-industry/luxembourg-a-leading-european-fund-domicile/
- Securitize, with backing from major financial institutions like Morgan Stanley and Nomura, aims to launch its own blockchain, Converge, in collaboration with Ethena to manage digital securities and tokenized assets more efficiently.
- Apex Group, a well-established player in fund administration and financial services, offers comprehensive services including traditional and alternative asset classes, and has a significant presence in European fund administration, particularly in Luxembourg.
- Despite some common clients, such as KKR and Hamilton Lane, the competitive landscape between Apex Group and Securitize in the digital asset fund administration sector is defined by their distinct service offerings, with Apex focusing on traditional asset classes and Securitize specializing in digital asset tokenization and blockchain-based fund administration.
