By Matt Stover, President, MG Stover

When an industry expands as fast as the digital assets sector has done over the last decade, specialist skills run at a premium. We at MG Stover, the leading and longest tenured full-service fund accounting and administration firm for digital assets, have been in this emerging industry since first being approached by a crypto hedge fund client in 2014. Through first-hand experience with clients and constant collaboration with CPAs, law firms and regulators, we have developed industry best practices in handling this challenging asset class.

To serve the increasing number of clients investing in digital assets, we have also nurtured the talent needed to maintain standards and respond to constant change and evolution in the digital asset landscape and global regulation.

As the sector expands, there is evidence of a skills gap looming in the future, and we are rising to the challenge. We are growing this essential talent pool and opening it up to help the whole industry. Fund managers will be able to recruit directly from a rich pipeline of candidates who know the challenges associated with digital assets and are ready to hit the ground running.

Meeting the demand for new skills

As one of the first companies in a new sector, we saw the need to build expertise from within while shaping best practices in institutional digital asset management. When supporting this nascent asset class, compared to traditional fund administration, our team learned very quickly that crypto reporting isn’t as automated as desired or reconciles very easily. Industry best practices and admin technology are still developing as the sector evolves almost daily. 

Our research exhausted almost every tool or method possible to accurately account and create best practices for digital assets. Trainees learn to apply core principles from the traditional finance (TradFi) space by incorporating highly nuanced aspects of audit, tax, and legal compliance.  Many times, the procedures we created were based upon the framework TradFi gave us and this gives every team member an opportunity to make an impact.  

Candidates looking to advance their careers rapidly develop skills in technology, critical thinking, and much more. There are plenty of operational differences when comparing traditional funds to digital asset funds. To succeed in digital asset fund administration, it is vital to understand each transaction, the regulatory guidelines, and the diligence required in record keeping. For example, portfolio pricing and reconciliation becomes a whole new ball game when you can trade digital assets 24/7, and there is no end to the trading day. As new protocols are developed and novel economic models are explored, mental agility and technical knowledge of this nascent asset class is forged daily by supporting our fund managers and becoming an extension of their operations.

A rising tide lifts all boats

A key part of the MG Stover culture is to focus on career opportunities and personal growth. There is a constant progression of people moving onwards from fund administration into the client space as subject matter experts for fund managers. Nurturing the next generation of talent is at the heart of our approach. Offering clients the chance to recruit from the excess pipeline ensures that there are opportunities for all the people who work with us to advance their careers.

Even in the recent downturn in asset values, the market has continued to expand. Digital asset fund administration is a growing business, and the market is struggling to hire the right talent and build fast enough to take on the opportunities available.

For funds who need people, and for people who have the drive to succeed, this is a truly unique offering meeting a real need in the space. MG Stover provides candidates who have the vision and passion to learn about digital assets with the specialist skills they need to fill a gap in a very challenging market. This is the rising tide that lifts all boats as we look to the future.