The digital asset custody platform GK8 has partnered with 2ND Market, a Brazilian cryptocurrency holding company, to expand the product offering of crypto assets in Brazil, a move that both companies say will support continued adoption in Latin America’s largest economy.
Under the partnership agreement, GK8 will license its institutional-grade custody platform to 2ND Market to give Brazilian users access to a broader range of cryptocurrency-related products and services. In particular, 2ND Market will leverage GK8’s integration with MetaMask Institutional, a multi-custody wallet, to provide users with access to decentralized finance (DeFi) and Web 3.0 crypto assets.
Founded in 2018, GK8 reportedly manages some $50 billion in digital assets — up from $1 billion two years ago — and uses an air-protected Cold Vault to suppress cyberattacks. The company has established custody partnerships with cryptocurrency trading platform INX, blockchain network Stellar, and State Street-backed entity Securrency, among others.
2ND Market operates as a technological ecosystem that tries to connect the infrastructure and usability of cryptocurrencies. The holding company operates multiple entities that work together to support the integration and adoption of crypto assets in Brazil.
GK8 referenced a study by cryptocurrency exchange KuCoin showing an increase in cryptocurrency adoption in Brazil as a key reason for establishing the association. According to the KuCoin report, approximately 16% of Brazilians – more than 34.5 million people – are exposed to digital assets such as Bitcoin (BTC) and Ether (ETH). A separate Gemini report in April also concluded that Brazil was leading the world in terms of digital asset adoption.
Brazil is going deeper into CBDC with a new test from Mercado Bitcoin. https://t.co/F5FYMo9iLa
— Cointelegraph (@Cointelegraph) May 25, 2022
Cryptocurrency adoption in Brazil is growing on multiple fronts. The Brazilian tax authority recently reported that as of August, more than 12,000 companies had digital assets on their books. For its part, Rio de Janeiro has just announced that it will start accepting cryptocurrencies for the payment of property taxes.
When asked about the state of cryptocurrencies in Brazil, GK8 co-founder and CEO Lior Lamesh told Cointelegraph that rising inflation and devaluation of the national currency have served as drivers of adoption:
“With inflation running at 10% and the Brazilian real weakening, it is not surprising that the adoption of cryptocurrencies in Brazil is around 16%. In fact, Brazil is ranked number 7 in the crypto adoption index. cryptocurrencies from Chainalysis, the top-ranked country in South America, and not far from the US We believe macroeconomic winds will continue to drive adoption.”
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