Galaxy Digital officials have just finalized an acquisition and have spent a fortune to execute the deal with success.
Galaxy Digital Finalizes a $44 Million Deal
As per the latest reports, the cryptocurrency investment firm owned by Mike Novogratz, Galaxy Digital has spent $44 million on the acquisition of GK8.
It is a cryptocurrency custody technology firm that has earned quite a reputation in the crypto market lately.
Reason for Acquisition
Galaxy Digital is determined to enter more business sectors and increase its ventures. For this purpose, the company is carrying out strategic acquisitions, and the acquisition of GK8 is part of that.
The officials at Galaxy recently revealed that they want to improve and enhance their management capabilities. In addition to that, the company wants to expand its capabilities pertaining to proprietary asset storage.
This is where the acquisition of GK8 comes in, which has recently filed a patent that is related to the technology that supports cryptocurrency custody.
It suggests that the technology GK8 has developed for crypto custody is unique and may have the potential to introduce a breakthrough in the crypto industry.
GK8 has claimed that its technology is going to be extremely beneficial and advantageous for institutional users. They will have access to a secure asset management platform for making investments.
This would help increase the adoption rate for cryptocurrencies among institutional investors. This will be a huge achievement for the entire cryptocurrency industry bringing in huge investments.
Technology Offered by GK8
GK8 has earned its name as one of the top cold vault technology providers in the crypto industry.
They have been providing their technology to users who do not want to be dependent on internet connectivity for crypto transactions.
The platform even offers multi-party computation (MPC) vault, which exists as an in-house development. Using the technology, the users can set commands and automate the processing of transactions.
The technology has the capability of offering users with so many other utilities and benefits. While using the technology, the users can perform trades, can interact with non-fungible tokens (NFTs).
In addition to the above, the users can also access and interact with the decentralized finance (DeFi) networks.
Increased Investor Demand for the Protocol
Novogratz had recently made a statement pertaining to the acquisition of the network. He even remarked on the achievements and performance of the particular network, which triggered strong adoption among investors.
He went on to highlight the capabilities and benefits offered by GK8, which reportedly pushed the adoption level of the network.
He also talked about custody services and how their demand has been surging tremendously among institutional investors.
This is what has compelled Novogratz to make the decision of acquiring the crypto technology company. As per him, it is the key reason why they have made the decision to go for GK8.
They have full confidence that the technological capabilities of the company will let them achieve so much in the cryptocurrency and institutional investment industry.
Galaxy Digital’s Upcoming Brokerage
Galaxy Digital had previously communicated that they were working on the development of their own cryptocurrency brokerage.
They had revealed that it would act as a prime brokerage and they had dubbed it “GalaxyOne”. Mike Novogratz has confirmed that their new brokerage will have the GK8 cold storage technology integrated into it.
This way, the users will have the ability to carry out transactions even when they do not have an internet connection.
Following the acquisition, 40 employees from GK8 will become part of Galaxy Digital. However, as the new brokerage is launched, the employees will be busy their sharing their expertise.
Going forward, GalaxyOne aims to offer a wide variety of cryptocurrencies and other crypto-based financial services to users.
Their aim is to bring crypto custody services to institutional investors in near future.