Galaxy Digital, Mike Novogratz’s cryptocurrency investment firm, has acquired GK8, a cold storage custody platform that provides secure asset management for institutional investors.
The acquisition is part of Galaxy Digital’s strategy to expand its proprietary asset storage and management capabilities, and tap into the increasing demand for cryptocurrency custody services.
GK8’s patented cryptocurrency custody technology is designed to provide a secure and offline cold vault storage that allows the execution of transactions without internet connectivity. The platform’s multi-party computation (MPC) vault technology enables automated transactions, and it also provides access to Decentralized Finance (DeFi) networks, tokenization, NFT and trading.
According to a statement from Novogratz, the acquisition was driven by the growing demand for custody services, and GK8’s cold storage solutions and wallet technology will be integrated into Galaxy Digital’s upcoming prime brokerage platform, GalaxyOne.
GalaxyOne is expected to offer a range of cryptocurrency financial services, including trading, lending, derivatives, cross-portfolio margining, and custodial offerings managed by GK8.
As part of the deal, Galaxy Digital will add an office in Tel Aviv, and the nearly 40 employees of GK8 will join the wider group, with founders Lior Lamesh and Shahar Shamai remaining to lead Galaxy’s custodial technologies.
Galaxy Digital’s move to expand its cryptocurrency custody services comes as institutional investors continue to seek secure ways to store and manage their digital assets. By offering a broad range of financial services, including custody solutions, GalaxyOne aims to cater to the growing demand from institutional-grade users.
In addition to its acquisition of GK8, Galaxy Digital also recently acquired Argo Blockchain’s main mining operation in a $65 million deal, doubling down on its investments in the cryptocurrency mining sector.
Overall, the acquisition of GK8 is a strategic move for Galaxy Digital, as it expands its capabilities in the cryptocurrency custody space, and positions itself as a comprehensive financial services provider for institutional investors. With the increasing demand for secure cryptocurrency storage and management solutions, Galaxy Digital’s move to invest in custody services is likely to pay off in the long run.