As investor demand for digital assets continues to rise, fund managers are navigating a rapidly evolving landscape marked by new complexities in portfolio management, custody, and administration. In this context, partnering with the right fund administrator can make a decisive difference - helping managers meet operational, regulatory, and investor expectations with greater confidence and efficiency.
At the heart of this evolution is the increasingly strategic role of the fund administrator. Far beyond routine back-office functions, today’s fund administrator plays a pivotal role across the entire fund lifecycle - from formation and structuring to accounting, compliance, and investor servicing. This is especially true for funds investing in digital assets, where the pace of innovation demands both specialised expertise and adaptability.
Our funds experts have drawn up a list of key responsibilities a fund administrator holds when supporting digital asset funds, and the impact this has on the operation of the fund.
Key Roles of the Fund Administrator in Digital Asset Funds
- Fund Formation Support: Involves early engagement with the fund manager during the structuring phase, ensuring that legal documents align with operational and accounting frameworks. This alignment is essential for accurately calculating management and performance fees, and for translating the fund sponsor’s intent into reality within the bounds of practical execution and compliance.
- Interpretation and Execution of Fund Documents: The fund administrator is responsible for applying the fund’s governing documents to accounting, valuation, and reporting processes, ensuring consistency and compliance with stated policies.
- Fund Accounting and NAV Calculation: Accurate, timely NAV calculations are critical. The administrator handles ongoing transaction processing, reconciliation, and bookkeeping - typically on a monthly basis for liquid digital asset funds.
- Investor Services: Administrators act as transfer agents, processing subscriptions and redemptions, and conducting AML and KYC due diligence on investors in line with applicable regulatory frameworks.
- Digital Asset-Specific Record-keeping: An administrator must have systems capable of tracking complex features such as staking, yield farming, airdrops, wrapped tokens, liquidity pools, and derivative margins.
- Annual Financial Statements: Preparation of annual financial statements in accordance with relevant accounting standards and assisting external auditors with the year-end audit process.
- Regulatory Reporting: Conducting regulatory reporting and providing regulatory services, especially for crypto funds.
- Adaptable Technology: To meet the demands of digital asset operations, administrators must invest in robust technology that supports high-volume transaction processing, real-time data auditing, and seamless integration with blockchain-based platforms.
Digital Structures for the Next Generation
As the fund industry undergoes rapid transformation, tokenization and blockchain technology have emerged as two of the most significant forces reshaping the future of investment. For advisors and fund sponsors looking to grow wealth for the next generation, understanding and adapting to these technologies is becoming essential.
These innovations are not fleeting trends - they represent foundational changes in how funds are structured, operated, and distributed. At Trident Trust, we recognise their potential to redefine investor engagement and transparency.
Our fund services team has identified several key impacts of tokenization and blockchain on both investors and fund administrators:
- Transformative Industry Impact: Tokenization is revolutionising fund accounting and investor relations by enhancing accessibility, improving transparency, and unlocking liquidity - particularly beneficial for generational wealth planning and broader investor reach.
- Greater Operational Efficiency: Tokenized funds offer streamlined processes, reducing administrative friction and improving turnaround times across key fund operations.
- Collaboration and Continuous Adaptation: Successfully integrating these technologies requires coordinated efforts among fund sponsors, administrators, and regulators, as well as a commitment to ongoing innovation and education.
- Real-Time Operations: Blockchain technology supports real-time transaction tracking and valuation, enabling faster, more accurate decision-making - a valuable feature for modern investors seeking agility and clarity.
Supporting the Future of Fund Services
Digital asset funds present unique challenges, particularly regarding the expertise and continuous training required to deliver high-quality fund administration services. Since 2018, Trident Trust has supported clients investing in and launching digital asset strategies. Our experience spans fund jurisdictions worldwide, giving us a deep understanding of the challenges and opportunities in this space. As we continue to expand our digital asset capabilities, we remain committed to delivering secure, compliant, and technology-forward solutions that serve the long-term interests of both fund sponsors and investors.
To learn more about our digital asset fund administration services, visit our Fund Administration Services page or reach out directly to our global experts:
Dan Smith, Head of Fund Services - U.S. at dsmith@tridenttrust.com
Vetrece Martin, Head of Digital Asset Fund Services - U.S. at vmartin@tridenttrust.com
Aaron Sammut, Head of Fund Services - Malta at asammut@tridenttrust.com
Dave van Duynhoven, Head of Funds - Cayman Islands at dvanduynhoven@tridenttrust.com
Tony Carr, Head of Fund Services - Singapore at tcarr@tridenttrust.com