Galaxy has added $100 million of Sky Protocol's yield-bearing sUSDS token to its corporate treasury and approved it as eligible collateral across its institutional trading business, which carries an average loan book of approximately $1.4 billion and serves more than 1,600 counterparties.
The firm also acquired an undisclosed amount of SKY tokens, though neither Galaxy nor Sky has disclosed the size or purchase price of that position.
Yield-Bearing Collateral Model
The sUSDS allocation represents more than a standard token purchase. Institutional clients pledging sUSDS as collateral can continue earning the Sky Savings Rate while the asset backs their borrowing—a model common in traditional markets, where treasury securities earn yield while serving as collateral.
Moving this framework onchain through stablecoin-based finance represents a significant test for institutional adoption of decentralized finance infrastructure.
Expanding an Existing Relationship
Galaxy and Sky were not entering into a new relationship. Grove, part of the Sky ecosystem, already provides Galaxy with a $500 million warehouse facility used to finance institutional loans backed by digital assets. Galaxy has also borrowed through Spark as part of its onchain financing strategy.
The addition of sUSDS to Galaxy's treasury and collateral framework consolidates these existing arrangements, with Sky's yield-bearing asset now sitting directly on Galaxy's balance sheet and integrated into its institutional credit operations.
