GK8, a cybersecurity and digital asset custodian has teamed up with Securrency, a fintech business, to offer institutional-grade blockchain solutions to banking clients.
GK8’s enterprise-grade custody solutions will be made available to Securrency’s clients as the fintech firm continues to build its tokenization infrastructure.
The main goal of Securrency is to tokenize real-world assets like stocks, commodities, and other securities.
GK8 is the “most secure custodial system in the market,” according to Dan Doney, co-founder and CEO of Securrency.
“GK8’s design provides all-around protection and functionality for enterprise-grade clients. By adding the GK8 custodial solution to our network, we can now make sure that our customers’ assets are protected to the highest standards.”
State Street, U.S. Bank, WisdomTree, and Abu Dhabi Catalyst Partners are all backing Securrency, indicating that institutional investors are taking a closer look at security tokenization.
Tokenization is the process of converting physical objects into digital assets using blockchain technology. Asset tokenization is thought to have significant ramifications for existing financial organizations. As explained in Cointelegraph’s Expert Take series:
“Tokenization” means that cryptographic keys control account management and asset claims, as opposed to a system operator called a bank controlling account and asset management.
Though tokenization provides divisibility, fungibility, and disintermediated business processes, such as asset transfer, it is more than just account management and claims to an asset.”
Tokenized security offerings are already available on major cryptocurrency exchanges like Binance and FTX. The daily volume of tokenized shares of Apple, Tesla, and GameStop on these platforms exceeds $1 million.