137 Interactions, 4 Today
As banks and other financial institutions want to invest in cryptocurrencies, demand for institutional-grade blockchain solutions is increasing.
GK8 will provide custody and tokenization services to the Stellar network, potentially increasing institutional interest in the Stellar Lumen (XLM) token.
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, the company announced Monday. GK8 has said that its infrastructure eliminates the risk of cyberattacks while also providing scalable, high-frequency transactions.
GK8 co-founder and CEO Lior Lamesh said the partnership enables XLM’s institutional investors to “generate new revenue streams, digitize assets, trade, and transform currency as it’s sent.”
Stellar is a blockchain-based payment network that deviated from the XRP protocol in 2014. XLM currently has a market valuation of $9.8 billion, ranking it 22nd among active crypto projects. According to CoinMarketCap, the token has increased by 23% in the last week.
Over the last year, GK8 has won several high-profile partnerships as it strives to grow institutional blockchain infrastructure. As reported by Cointelegraph in August, State Street-backed Securrency teamed with GK8 to extend its tokenized infrastructure. Mastercard has also joined GK8’s Startup Path initiative.
The advent of new use cases for digital assets has increased institutional enthusiasm for cryptocurrencies. A sizable proportion of wealth managers intend to either buy cryptocurrency for the first time or increase their existing holdings. Now that crypto investing has been de-risked from a reputational aspect, financial advisers may be leading the adoption drive.
Traditional financial institutions, too, have begun to offer institutional custody services. Cowen, a 103-year-old bank, announced in May that it plans to handle cryptocurrency on behalf of asset managers and hedge funds.