Galaxy Digital has expanded its relationship with Sky Protocol through a new lending and capital markets partnership that includes a $100 million sUSDS treasury allocation and broader integration of the token across the company's institutional business.
Treasury Allocation and Collateral Approval
Galaxy added $100 million of sUSDS to its corporate treasury under the expanded arrangement with Sky Protocol. The company also approved sUSDS as eligible collateral across its institutional trading operations, which support more than 1,600 trading counterparties and maintain an average loan book of $1.4 billion.
Institutional clients can now use sUSDS as collateral when securing loans through Galaxy's platform while continuing to earn the Sky Savings Rate on their entire sUSDS position. This structure allows deposited collateral to generate yield while supporting borrowing activity within Galaxy's lending network.
The move makes Galaxy one of the early public companies holding sUSDS directly on its balance sheet. Galaxy has already used Sky-linked infrastructure for institutional credit and digital asset lending services, so the treasury allocation expands an existing relationship.
Funding Infrastructure and Market Access
Grove, a Prime Agent within the Sky ecosystem, provides Galaxy with a $500 million warehouse facility for institutional loans secured by digital assets. The facility supplies USDS capital through a dedicated lending structure supporting Galaxy's loan origination activities.
Galaxy has also borrowed through Spark, another Prime Agent connected to Sky, to support its GOFR product and provide additional financing for institutional clients. The new arrangement extends these connections across treasury management, collateral, lending, and Galaxy's broader Global Markets business.
Broader Market Context
Sky Protocol entered the third quarter with $5.41 billion supplied through independent allocators and institutional tokenized funds. The ecosystem holds positions in BlackRock's BUIDL and Janus Henderson's JTRSY tokenized products.
The sUSDS supply reached $5.52 billion at the end of the second quarter, representing a 149% increase from the previous year. The broader tokenized asset market has expanded as financial institutions adopt blockchain-based collateral and settlement products, with onchain real-world assets excluding stablecoins surpassing $33 billion during July 2026.
