Crypto asset management firm Galaxy Digital is preparing to acquire self-custody platform GK8 from Celsius, a digital asset lender that collapsed earlier this year.
According to a new press release, Galaxy Digital is purchasing the Israel-based institutional-grade custody platform as a means of offering self banking services to its customers.
Furthermore, Galaxy Digital plans to use GK8’s technology to help develop GalaxyOne, the firm’s upcoming crypto exchange platform.
As stated by the company’s founder and chief executive, billionaire Mike Novogratz, in the press release,
“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.
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.”
In July, Celsius filed for bankruptcy after its native asset CEL collapsed and the protocol was forced to halt customer withdrawals just a month earlier.
The crypto lender initially purchased GK8 in November of 2021 for a total of $115 million as a means of developing new features and products. The price at which Galaxy Digital acquired the self-custody platform was not disclosed.
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