GK8 Announces Partnership With Stellar Lumen

Blockchain cybersecurity company GK8 will offer storage and tokenization services to the Stellar network. (photo credit: Hitesh Choudhary/Unsplash)

JAKARTA - Blockchain cybersecurity firm GK8 will offer storage 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 custodial arrangements, opening the door for digital currency offline transactions. This was announced by the company Monday, September 6. GK8 says 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 institutional investors to “generate new revenue streams, digitize assets, trade and change currencies as they are delivered.”

Stellar operates as a blockchain-based payment network that originally forked from the XRP protocol in 2014. XLM has a total market cap of 9.8 billion US dollars. This places it at number 22 among active crypto projects. The token has gained 23% over the week, according to CoinMarketCap.

GK8 has secured several high-profile partnerships over the past year as it continues to expand its institutional blockchain infrastructure. As Cointelegraph reported in August, State Street-backed Security partnered with GK8 to expand its token infrastructure. GK8 has also involved 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. Most wealth managers are planning to buy crypto for the first time or expand their existing holdings. Financial advisors can lead the adoption drive now that crypto investments have been reduced risk from a reputational point of view.

Traditional financial institutions are also starting to launch institutional care services. In May, 103-year-old Cowen bank said it wanted to hold cryptocurrencies on behalf of asset managers and hedge funds.