In line with an erstwhile acquisition bid, Galaxy Digital has bought institutional crypto custody firm GK8 for $44 million with the primary objective of using the asset in offering a full-service financial platform for digital assets as per a post.
Galaxy digital, which is a crypto investment firm owned by Mike Novogratz, has also developed its own patent crypto custody technology with a view to offering secure asset management for institutional users.
Speaking on the acquisition process, Novogratz explained that the increasing demand by investors for custody services was the rationale behind the acquisition.
It is noteworthy that GK8 offers cold storage solutions and wallet technology will be integrated into Galaxy Digital’s prime brokerage platform GalaxyOne. This facilitates the implementation of transactions without internet connectivity.
The GK8 has an in-house multi-party computation (MPC) vault that accelerates transactions as well as provides access to Decentralized Finance (DeFi) networks, tokenization, NFT and trading.
However, GalaxyOne is projected to offer a broad range of cryptocurrency financial services including trading, lending, derivatives, and cross-portfolio margining, among other crypto-related services.
It would be recalled that Galaxy delved into investing in the crypto mining realm in Dec. 2022, following its acquisition of Argo blockchain’s major mining facility for $65 million.
Reign of Galaxy Digital in Crypto Space
Prior to now, Galaxy Digital has been making indelible imprints on the crypto space. Galaxy Digital CEO, Mike Novogratz once filed for a Bitcoin ETF in the United States. The ETF product dubbed the ‘Galaxy Bitcoin ETF’ offers common shares services.
It is noteworthy that the Galaxy Bitcoin ETF emerged as the 9th official Bitcoin ETF filing in the United States forwarded to the U.S. Securities and Exchange Commission (SEC).
In the same vein, the digital asset and crypto firm also raised $250 million for loans under the fund for lending to crypto companies in difficult situations.
Having stayed afloat for nearly half a decade, Galaxy Digital is determined to make its mark in the crypto space. It is hoped that it will sail through.
