PolySign Inc. announced signing an agreement to acquire MG Stover for a combination of cash and PolySign stock. The acquisition is a part of its ongoing efforts to improve the quality and breadth of digital asset infrastructure available to institutional investors. MG Stover is the industry trendsetter in digital fund administration, with an impressive client base record of more than $40 billion in digital assets under administration. By doing this, it has become the world's largest industry by far.
PolySign can now provide institutional investors with a comprehensive, vertically integrated custody, trading, and administration offering for cryptocurrency and digital assets by acquiring MG Stover's best-in-class fund service capabilities. In addition, this near-term development accelerates PolySign's product development plan and paves the way for future service enhancements.
In addition to this acquisition, PolySign will also gross its Series C capital raise by adding new shareholders such as Brevan Howard, Soros Fund Management, and GSR to its shareholder base. Cowen Digital will also increase its equity position.
MG Stover will be responsible for PolySign's industry-leading digital asset custody and trading offerings for institutional investors. The acquisition was made looking at PolySign's notable developments in 2021, when its wholly-owned subsidiary, Standard Custody & Trust Company, LLC, received its trust charter from the New York Department of Financial Services— one of the world's most developed and well-respected digital asset regulators.
PolySign had formerly announced a strategic partnership with Cowen Digital, Cowen Inc.'s digital asset division. This also led PolySign's $53 million Series B round of funding. PolySign's next-generation digital banking technology has been integrated into Cowen's innovative, non-conflicted sales and trading platform. PolySign has provided institutional investors with secure, compliant access to the multi-trillion-dollar digital asset market due to these advancements.
Matt Stover, Founder and CEO of MG Stover is widely regarded as a visionary in our industry. We are enchanted to gain his expertise as a shareholder and a core member of our leadership team."
PolySign CEO Jack McDonald
Our success in developing institutional best practices for the digital asset ecosystem has aided in the growth of a sector with over $2 trillion in assets. Joining the PolySign team will strengthen our core fund administration offering while also allowing us to develop new capabilities that will shape how institutions engage in digital assets for years to come.
Matt Stover, Founder and CEO of MG Stover.
PolySign is supposed to complete the acquisition of MG Stover in Q2 2022. Macquarie Capital and Cowen served as financial advisors, with Perkins Coie and KL Gates serving as legal counsel for PolySign; Houlihan Lokey served as financial advisors, and Bryan Cave served as legal counsel to MG Stover.