Galaxy Digital acquires virtual currency custody company for USD 44 million.

Galaxy Digital has invested USD 44 million in an institutional virtual currency custody platform to utilise its unique asset custody and management capabilities.

Galaxy Digital, a virtual currency investment company led by Mike Novogratz, has completed the acquisition of GK8, a developer of proprietary virtual currency custody technology aimed at giving institutional investors secure asset management.

The service specialises in providing cold vault technology, which allows trades to be executed without an internet connection. The in-house developed Multi-Party Computation (MPC) vault provides trade automation capabilities and the service also offers access to decentralised financial networks, tokenisation, NFTs and trading.

Novogratz's announcement highlighted the growing investor demand for custody services as the main reason for the acquisition, with GK8's cold storage solutions and wallet technology to be used in Galaxy Digital's upcoming prime brokerage platform, the GalaxyOne, is expected to be included in the GalaxyOne.

As a result of the acquisition, Galaxy Digital will have an office in Tel Aviv and nearly 40 GK8 employees will become more part of the group; GK8's founder will continue to lead Galaxy's custody technology after the acquisition.

'GalaxyOne' will reportedly offer a wide range of virtual currency financial services to institutional-grade users at its launch. This will include trading, lending, derivatives, portfolio margining and custody services managed by GK8.

Source: https://jp.cointelegraph.com/news/galaxy-acquires-institutional-crypto-custody-firm-for-44m