Cryptocurrency & DeFi Fund Administration
Stonegate Global Fund Services is an industry leader in fund formation, structuring, regulatory compliance, fund administration and investor servicing for Cryptocurrency Funds and other Digital Asset Funds. With expertise in Blockchain technology, cryptocurrency and other digital assets, Stonegate Global provides institutional and emerging investment managers a suite of services to establish and manage various types of alternative investment fund products.
Prime Brokerage, Crypto Exchanges & Reporting
Central to these challenges is the rapidly growing number of exchanges and execution platforms that lack traditional prime brokerage and consolidated reporting. Unlike the traditional prime brokerage model that bundles services including custody, consolidated counter-party reporting, trade execution, technology, margin lending, and risk management services, crypto-asset funds lack a centralized platform for these services. Fund administration firms rely heavily on this data to provide its suite of services. Without such a solution, fund administration requires the import of data from disparate sources, numerous exchanges, etc. Fortunately, it appears as a couple of major industry players are rapidly approaching the deployment of a prime brokerage solution for the cryptocurrency asset class.
Fund Administration & Valuation
Other important considerations in administering crypto-asset funds includes valuation. In a traditional alternative asset fund, valuation is typically measured in the investors’ native currency (i.e. USD, EURO, GBT, JPY etc.). However with cryptocurrencies, valuation can be based on factors that include both native currency and cryptocurrency values. Choosing the correct valuation methodology is an important factor in the administration of digital asset funds.
AML/KYC is different for cryptocurrency funds. Blockchain technology & cryptocurrency fund managers need an administrator which is not only experienced in traditional AML/KYC procedures, but one that is also on the leading edge of the regulatory requirements to facilitate complex AML/KYC processes and procedures for cryptocurrency funds and their investors
Stonegate Global strives to stay ahead of fund governance issues and industry best-practices related to Blockchain technology, cryptocurrency, and digital asset hedge funds. Our robust experience of AML & KYC procedures as a leading fiduciary and corporate administrator allows us to use our intimate knowledge of the regulatory environment in many jurisdictions worldwide.
Increasing legislation in the US and Europe will continue to increase fund managers’ focus on regulatory issues. Our compliance, registration and administration services can assist managers in efficiently handling compliance with new regulations, rules and laws.