Galaxy acquires institutional crypto custody firm for $44M

Galaxy Digital has invested $44 cardinal into an organization cryptocurrency custody level to pat into its proprietary plus retention and absorption capabilities.

Mike Novogratz’s cryptocurrency concern steadfast has completed the acquisition of GK8, which has developed its ain patent cryptocurrency custody exertion aimed astatine giving unafraid plus absorption for organization users.

The work specializes successful providing acold vault exertion that allows the execution of transactions without net connectivity. Its in-house multi-party computation (MPC) vault provides the quality to automate transactions, and the work besides provides entree to Decentralized Finance (DeFi) networks, tokenization, NFT and trading.

A connection from Novogratz highlighted accrued capitalist request for custody services arsenic a cardinal crushed down the acquisition. GK8’s acold retention solutions and wallet exertion volition beryllium onboarded into Galaxy Digital’s upcoming premier brokerage level GalaxyOne.

The concern woody volition spot Galaxy adhd an bureau successful Tel Aviv to its organization, with astir 40 GK8 employees becoming portion of the wider group. GK8 founders Lior Lamesh and Shahar Shamai enactment connected done the acquisition to pb Galaxy’s custodial technologies offering.

Related: Mike Novogratz calls Helios a ‘transformative acquisition’ for Galaxy

GalaxyOne is touted to connection a wide scope of cryptocurrency fiscal services to institutional-grade users connected its launch. This volition see trading, lending, derivatives, cross-portfolio margining arsenic good arsenic custodial offerings managed by GK8.

Galaxy doubled down connected its investments into the cryptocurrency mining assemblage successful December 2022, announcing a $65 cardinal acquisition of Argo Blockchain’s main mining operation. The mining steadfast had to merchantability disconnected its Helios mining installation to debar bankruptcy during a pugnacious twelvemonth for the sector.