GK8 To Offer Custody And Tokenization Services To The Stellar Network



GK8, the blockchain cybersecurity company, will be offering custody and tokenization services to the Stellar network, a move that could spark institutional interest in the Stellar Lumen (XLM) token.


It has been reported that by integrating with Stellar, customers of GK8 can access XLM investments in a custodial setting, opening the door to offline transactions of the digital currency.


However, GK8 said that its infrastructure eliminates the risk of cyberattacks while also providing scalable, high-frequency transactions.


Lior Lamesh, the CEO and co-founder of GK8, said that the partnership enables XLM’s institutional investors to “generate new revenue streams, digitize assets, trade, and transform currency as it’s sent.”


The report said that Stellar operates as a blockchain-based payment network that initially forked away from the XRP protocol in 2014. XLM has a total market capitalization of $9.8 billion, placing it 22nd among active crypto projects. The token has gained 23% over the week.


Likewise, GK8 has secured several high-profile partnerships over the past year as it continues to expand institutional blockchain infrastructure. As reported in August, State Street-backed Securrency partnered with GK8 to expand its tokenized infrastructure. GK8 has also engaged Mastercard in its Startup Path program. Institutional appetite for cryptocurrencies is on the rise thanks to the emergence of new use cases for digital assets. A large percentage of wealth managers plan to either buy crypto for the first time or expand their existing holdings.

Financial advisers could be leading the adoption drive now that crypto investing has been de-risked from a reputational standpoint. Traditional financial institutions have also begun rolling out institutional custody services.


Thus, in May of this year, the 103-year-old bank Cowen said that it wants to hold cryptocurrencies on behalf of asset managers and hedge funds.


Source: Cointelegraph