GK8, a blockchain cyber security company, will provide custody and tokenization services to the Stellar Lumen network, potentially sparking institutional interest in the XLM token.
Customers of GK8 can now access XLM investments in a custodial setting, allowing for offline transactions of the digital currency, according to the company’s announcement on Monday. According to GK8, its infrastructure eliminates the risk of cyberattacks while also enabling scalable, high-frequency transactions.
According to GK8 co-founder and CEO Lior Lamesh, the partnership will allow XLM’s institutional investors to “generate new revenue streams, digitize assets, trade, and transform currency as it is sent.”
Stellar is a blockchain-based payment network that was founded in 2014 as a fork of the XRP protocol. The total market capitalization of the XLM token is $9.8 billion, ranking it 22nd on the list of active crypto projects. According to CoinMarketCap, the token has increased by 23% in the last week.
Over the last year, GK8 has secured several high-profile partnerships as it continues to expand institutional blockchain infrastructure. As reported by us in August, State Street-backed Securrency partnered with GK8 to expand its tokenized infrastructure. Mastercard has also joined GK8’s Startup Path program.
The emergence of new use cases for digital assets has increased institutional appetite 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 standpoint, 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 intends to hold cryptocurrencies on behalf of asset managers and hedge funds.