By George Ward
Galaxy Digital Holdings Ltd, a cryptocurrency financial services provider, has won the bid to acquire GK8, a platform owned by Celsius Network. According to the firm, the transaction is a part of the bankrupt crypto lender’s liquidation plan but is pending regulatory approval.
GK8 is a safe institutional self-custody platform for digital assets that allows customers to conduct transactions offline, protecting them from cyberattacks. In addition, should regulators approve the bid, GK8 will help Galaxy Digital grow its brand.
It completes the final element needed by Galaxy Digital to deliver a full range of crypto service options. Mike Novogratz, the chief executive officer of Galaxy, stated that acquiring GK8 is a critical aspect of the company’s effort to become a complete financial service provider of digital assets.
As a complete financial service provider on digital assets, the company’s clients can store their digital assets with Galaxy or elsewhere without jeopardizing functionality and versatility.
He stated further that adding GK8 to Galaxy’s lineup of premium products demonstrates the firm’s readiness to seize strategic opportunities to expand the company sustainably. Galaxy Digital lost a deal to buy BitGo last year and has been looking to buy a cryptocurrency custody firm with an institutional rating.
The agreement was terminated after allegations that BitGo broke the terms of the agreement by failing to provide a complete audited statement about its finances as of July 31 this year. The contract’s termination prompted BitGo to file a lawsuit. However, this hasn’t impacted Galaxy’s search for another respectable company to acquire, such as GK8.
Adding GK8 To Galaxy Digital
The Tel Aviv-based GK8 will play an essential role under the Galaxy Digital brand. Last year, Celsius Network paid $115 million to purchase GK8.
Although the amount at which Galaxy Digital is buying it is not yet public, it is likely to be huge. If the acquisition is authorized, Galaxy Digital will take over GK8’s Israeli operation and a staff of about 40 individuals, including cryptographers and blockchain technologists.
GK8’s CEO and CTO, Lior Lamesh and Shahar Shamai, will continue to work for the company and head the new custody business following this acquisition.
According to Lamesh, the company has gone to great lengths to establish itself as the financial institution’s preferred platform for security. As a result, the company is thrilled about working with one of the top companies in this space.
A company that offers financial and digital asset services to organizations that fully comprehend the significance of GK8’s blockchain-built custody technology.
With Galaxy’s support, GK8 hopes to launch innovative products that highlight a synergy between Galaxy’s best services and GK8’s unmatched R&D capabilities.