Galaxy Digital Holdings Ltd. a financial firm focused on crypto, Galaxy Digital Holdings Ltd. has completed the acquisition of digital asset custody platform GK8 at a price of $44 million. The company won an auction in which it was able to purchase the company after the bankruptcy proceedings for Celsius Network.
GK8 offers managed self-custody for crypto assets. This allows holders to keep the keys of their wallets and not give them up to third parties. GK8’s technology allows the users to access and store their assets in their vaults safely, while maintaining total control.
GK8’s cold wallet allows users to safely store and use cryptocurrencies, without having to connect online. Multiparty computation vault is also offered by the firm. This automated method of crypto storage works through multiple users who have to sign transactions before they can move assets.
Galaxy plans to continue supporting GK8 in its independent self-custody service offering. GalaxyOne will integrate its solutions in its ongoing development, which is a prime brokerage service for institutional investors. GalaxyOne, a new prime brokerage service for institutional investors, will combine trading, loans, portfolio management, derivatives and custodial services of cryptocurrency.
The crypto lender Celsius Network filed for bankruptcy last July when it became entangled in the chaos that followed the demise of FTX Trading Limited. GK8 was one of the assets that were put on sale by the company. Galaxy was able to buy the crypto custody company at a significant discount due to the bankruptcy.
The acquisition of GK8 will allow us to offer our customers a full service financial platform that allows them to manage their digital assets in-house or separately from Galaxy, without having to compromise on functionality and versatility,” stated Mike Novogratz.
Galaxy’s acquisition will bring in a new team of almost 40 employees, which includes more blockchain and cryptographers. Galaxy, which is also based in Tel Aviv and has a global presence in that region thanks to GK8, will gain a new office.
Galaxy will retain GK8’s founding members, Lior Lameh as CEO and Shahar Shamai, as the chief technology officer of its new business unit, Galaxy Custodial Technology.
Lamesh stated that they have been working hard to make their platform the preferred choice of financial institutions in the ecosystem for digital assets. “With the backing of Galaxy, we aim to introduce new and exciting offerings to the industry that showcase a combination of Galaxy’s best-in-class services and GK8’s cryptography, security and unparalleled R&D skills.”