GK8, a cybersecurity and digital asset custodian, has partnered with fintech company Securrency to provide cyberbanking clients with institutional-form blockchain solutions.

The partnership centers around GK8'south enterprise-grade custody solutions, which volition become available to Securrency's clients as the fintech company builds its tokenization infrastructure. Securrency'south master focus is tokenizing real-globe assets such equally stocks, commodities and other securities.

Dan Doney, co-founder and CEO of Securrency, described GK8 equally the "most secure custodial solution in the market place," calculation:

"GK8'southward pattern provides all-around protection and functionality for enterprise-course clients. Past adding the GK8 custodial solution to our network, we can at present make sure that our customers' assets are protected to the highest standards."

Securrency is backed past State Street, U.Southward. Bank, WisdomTree and Abu Dhabi Catalyst Partners, suggesting that institutional players are looking at security tokenization more closely. Tokenization refers to the process of turning existent-world items into digital assets through blockchain technology. In finance, asset tokenization is said to have major implications for traditional institutions. As Cointelegraph'southward Expert Take series explained:

"Tokenization implies that account management and claims on assets are driven by cryptographic keys, equally opposed to account management and asset management by a system operator chosen a banking concern. Though tokenization is more than than just account direction and claims to an asset, it enables divisibility, fungibility and disintermediated business organization functions, such equally asset transfer."

Related: Security tokenization may exist the next big use example for blockchain tech

Major cryptocurrency exchanges like Binance and FTX already offer tokenized securities. On these platforms, tokenized shares of Apple tree, Tesla and GameStop log more than than $ane 1000000 in daily volumes.

Need for tokenized assets isn't just coming from retail investors, only banks as well. Lior Lamesh, co-founder and CEO of GK8, told Cointelegraph that the banking sector is driving a pregnant portion of the demand for such assets:

"Banks are no longer only focusing on cryptocurrencies as an asset class, but also looking to tokenize traditional avails (Equities, Bonds, Gold, etc.), including tier one banks in the U.S. and globally."

When asked near the biggest trends within tokenization, Lamesh said nonfungible tokens, or NFTs, were the clear leader in terms of demand and overall adoption. However, "a runner-upward would be the tokenization of traditional financial assets" such equally equities bonds and precious metals, he said.