Feb 24, 2023
Galaxy Digital Invests $44M in Crypto Custody Platform
Galaxy Digital, the crypto investment firm owned by Mike Novogratz, has invested $44 million into an institutional cryptocurrency custody platform to tap into its proprietary asset storage and management capabilities.
The service, GK8, specializes in providing cold vault technology that allows the execution of transactions without internet connectivity. Its in-house multi-party computation (MPC) vault provides the ability to automate transactions, and the service also provides access to Decentralized Finance (DeFi) networks, tokenization, NFT and trading.
Novogratz explained that the acquisition was driven by the increased demand for custody services from investors. GK8’s cold storage solutions and wallet technology will be integrated into Galaxy Digital’s upcoming prime brokerage platform, GalaxyOne.
The business deal will see Galaxy add an office in Tel Aviv to its organization and nearly 40 GK8 employees joining the wider group. GK8 founders Lior Lamesh and Shahar Shamai will remain in their positions to lead Galaxy’s custodial technologies offering.
GalaxyOne is designed to offer a range of cryptocurrency financial services to institutional-grade users. This will include trading, lending, derivatives, cross-portfolio margining as well as custodial offerings managed by GK8.
Galaxy has been investing heavily in the crypto mining sector, and in December 2022, the firm announced a $65 million acquisition of Argo Blockchain’s main mining operation. The mining firm had to sell off its Helios mining facility to avoid bankruptcy during a tough year for the sector.
The acquisition of GK8 is part of Galaxy’s efforts to provide a comprehensive suite of services for institutional users. The firm plans to leverage GK8’s technology to offer a secure platform for storing and trading NFTs, as well as helping users promote their NFTs through Twitter NFT marketing campaigns.
Galaxy is also working on a number of initiatives to help users promote their NFTs, including working with a NFT marketing agency to create custom NFT marketing campaigns and strategies. The firm is also partnering with a web3 agency to help users sell their NFTs.
With the acquisition of GK8, Galaxy Digital is positioning itself as a leader in the institutional crypto space, providing a comprehensive suite of services to help users store, trade, and promote their NFTs.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.