Galaxy Digital buys GK8 custodian from Celsius Network

Galaxy Digital, led by Mike Novogratz, won an auction to buy GK8, the custody platform from the bankrupt Celsius Network .

Terms of the deal were not disclosed. Galaxy’s co-president Kris Ferraro told CoinDesk in an interview that the asset cost the firm under $115 million, which Celsius paid for it last year.

The Israeli startup positioned its platform as a cold-storage solution for financial institutions, supporting various cryptocurrencies, decentralized applications and staking.

The company said it would integrate GK8’s technologies into the GalaxyOne service. It is expected to provide institutional investors with a combination of trading, lending, and asset management in a single solution.

“Acquiring GK8 is a cornerstone of our efforts to build a comprehensive digital-asset financial platform, enabling clients to store their assets both in Galaxy’s service and beyond it, without compromising functionality,” said Novogratz.

After the deal closes, the startup’s team of about 40 people will join Galaxy. The project’s co-founders, Lior Lamash and Shahar Shamai, will head the firm’s custody business. The U.S.-based cryptocurrency company will expand its geographic reach with an office in Tel Aviv.

In October the auction plan for Celsius assets was approved.

In November, layoffs at Galaxy were reported.

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