Galaxy to acquire institutional digital asset self-custody platform GK8
Galaxy Digital Holdings Ltd. (TSE:GLXY) today announced it intends to acquire GK8, a secure institutional digital asset self-custody platform. The acquisition will be the result of a sale process executed in connection with Celsius Network LLC’s Chapter 11 bankruptcy and is subject to court approvals and other closing conditions.
GK8 is a technology provider for institutions looking to custody their digital assets, using patented technology to safely store cryptocurrencies and execute blockchain transactions without connecting to the internet. Galaxy intends to support GK8’s ongoing operations in offering unique self-custody technology to the world’s leading financial services firms, as well as utilize GK8’s custody solution in the ongoing development of GalaxyOne.
“The acquisition of GK8 is a crucial cornerstone in our effort to create a truly full-service financial platform for digital assets, ensuring our clients will have the option to store their digital assets at or separate from Galaxy without compromising versatility and functionality,” said Mike Novogratz, Founder and CEO of Galaxy. “Adding GK8 to our prime offering at this pivotal moment for our industry also highlights our continued willingness to take advantage of strategic opportunities to grow Galaxy in a sustainable manner.”
The transaction will accelerate Galaxy’s product innovation and development by adding a team of nearly 40 people, including cryptographers and blockchain engineers. The deal will also expand Galaxy’s geographic reach with the addition of an office in Tel Aviv.
GK8 founders CEO Lior Lamesh and CTO Shahar Shamai will stay on to lead Galaxy’s new custodial technologies business. In addition to providing self-custody solutions to GalaxyOne and institutional investors, GK8 will also continue to directly support financial institutions’ efforts to safeguard their clients’ digital assets, including banks, trust companies, broker-dealers, and retail platforms.
“We’ve vigorously worked to become the most secure platform of choice for financial institutions participating in the digital asset ecosystem,” said Lamesh. “We are excited by the prospect of joining one of the leading providers of financial and digital asset services to institutions who truly understand the impact of GK8’s custody technology on the future of blockchain. 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.”