Blockchain cybersecurity firm GK8 will offer custody and tokenization services to the Stellar network, a move that could spark institutional interest in the Stellar Lumen (XLM) token.
By integrating with Stellar, GK8 customers can access XLM investments in a depot environment, opening the door for offline digital currency transactions, the company announced on Monday. GK8 has said that its infrastructure eliminates the risk of cyberattacks while providing scalable, high-frequency transactions.
Lior Lamesh, Co-Founder and CEO of GK8, said the partnership will enable XLM’s institutional investors to “generate new revenue streams, digitize assets, trade and convert currencies on the fly”.
Stellar operates as a blockchain-based payment network that was initially split off from the XRP protocol in 2014. XLM has a total market capitalization of $ 9.8 billion, making it 22nd among active crypto projects. According to CoinMarketCap, the token gained 23% over the course of the week.
GK8 concluded several high-profile partnerships in the past year to further expand the institutional blockchain infrastructure. As Cointelegraph reported in August, State Street-backed securrency has partnered with GK8 to expand its tokenized infrastructure. GK8 has also included Mastercard in its Startup Path program.
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The institutional appetite for cryptocurrencies is growing 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 to expand their existing holdings. Financial advisors could lead the launch campaign now that the risk of investing in crypto has been reduced from a reputational point of view.
Traditional financial institutions have also started adopting institutional custody services. In May, 103-year-old bank Cowen said it wanted to hold cryptocurrencies on behalf of asset managers and hedge funds.