#88: Fund Accounting for Digital Assets with MG Stover & Otto

The investment fund industry is massive, spanning everything from mutual funds and hedge funds to private equity and ETFs. But something’s changing.Finance is shifting from slow, opaque off-chain transactions to fast, transparent on-chain finance. Tokenized funds are here, with institutional AUM now over $470 million (rwa.xyz).Leading this evolution is MG Stover, managing $40billion+ in digital assets and now part of Securitize, a leader in tokenizing real-world assets ($3.7billion on-chain). Their latest innovation? Otto, an app designed for institutional digital asset funds.On Ep. 88, I speak with Patrick Clancy, Head of Growth at MG Stover, about fund administration for digital assets, how to launch a digital assets fund, and the tech driving them.✅ OUR RESOURCES💌Join our weekly free newsletter and become a confident web3 Accountant ⁠⁠⁠⁠https://www.theaccountantquits.com/newsletter⁠⁠⁠⁠🤓 Join the FREE Crypto Accounting Class & learn how to start working in web3 accounting https://www.theaccountantquits.com/free-class🙌 Join the next cohort of the Crypto Accounting Academy and learn how to manage a business using crypto ⁠⁠⁠⁠https://www.theaccountantquits.com/crypto-accounting-academy⁠⁠⁠⁠ ✊ Follow The Accountant Quits on Socials👉 LinkedIN: ⁠⁠⁠⁠https://www.linkedin.com/school/the-accountant-quits⁠⁠⁠⁠ 👉 Twitter(X): ⁠⁠⁠⁠https://x.com/accountantquits⁠⁠⁠⁠ 👉 YouTube: ⁠⁠⁠⁠https://www.youtube.com/@theaccountantquits⁠⁠⁠⁠ 🎙️ Follow Episode GuestPatrick Clancy: https://www.linkedin.com/in/keepingitpc/ 🎧 WebsiteFor show notes and past guests, please visit ⁠⁠⁠⁠https://www.theaccountantquits.com/podcast⁠⁠⁠⁠ Topics Covered:(0:00) Coming Up(0:49) Episode intro(3:50) Challenges with digital assets fund admin(5:35) Difference between fund admin & fund manager(8:05) Working with regulated custodians(9:20) Operational setup, including NAV reporting(13:02) Gaps in DeFi tooling(15:47) Thanks to our sponsor Request Finance(17:26) Fund structures for digital assets(23:10) Capital markets narratives (27:58) Tipping point for tokenized funds(30:42) History of MG Stover with crypto fund admin(34:54) Acquisition by Securitize(36:11) Thanks to our sponsor Octav(37:52) Otto, a tool for fund administration(41:33) Otto v/s subledger v/s Allvue(45:01) Growth initiatives for Otto(49:09) Closing education gap for accountants(52:11) Closing thoughts(53:05) Patrick’s favourite maxim