Galaxy Digital, a Nasdaq-listed digital-asset firm, has allocated $100 million of sUSDS, Sky Protocol's yield-bearing savings token, to its corporate treasury. The firm also approved sUSDS as eligible collateral across its institutional trading business, which serves more than 1,600 counterparties.
Galaxy funded the position using its own balance sheet and acquired an undisclosed amount of SKY, Sky Protocol's governance token, according to the announcement.
Institutional Integration
Under the arrangement, Galaxy clients can post sUSDS as loan collateral while continuing to earn the Sky Savings Rate on the full amount for the duration of the loan. This structure allows institutional clients to earn yield and use an asset as collateral simultaneously.
Galaxy's lending business carries an average loan book of approximately $1.4 billion. Max Bareiss, Galaxy's head of lending, stated that the addition of sUSDS to the treasury deepens the firm's financing through Sky and gives clients more efficient access to onchain yield.
Broader Partnership Context
The treasury allocation builds on an existing financing relationship. Grove, a Prime Agent within the Sky ecosystem, already provides Galaxy with a $500 million warehouse lending facility, committing USDS capital through a dedicated vehicle that finances institutional loans originated by Galaxy and secured by digital assets.
Market Performance
sUSDS supply reached $5.52 billion at the end of Q2, up 149% over the previous year. Sky reported five consecutive profitable quarters, including $107.35 million in gross revenue and a $33.29 million net surplus in Q2 2026.
Following the announcement, SKY token posted double-digit gains, with the token remaining 7.5% higher over the past 24 hours and showing a 16.9% gain over seven days.
