Galaxy Digital adds $100m of Sky's sUSDS to treasury and loan collateral
Nasdaq-listed Galaxy Digital has placed $100m of Sky Protocol's yield-bearing sUSDS on its balance sheet and approved the token as collateral for institutional loans.
Key points
- Galaxy Digital allocated $100 million of Sky Protocol's sUSDS to its corporate treasury, funded from its own balance sheet.
- sUSDS was approved as eligible collateral across Galaxy's institutional trading business, which serves more than 1,600 counterparties.
- Clients can post sUSDS against loans while still earning the Sky Savings Rate on the full amount for the loan's duration.
- Galaxy's lending business runs an average loan book of about $1.4 billion, and Grove already provides a $500 million warehouse facility.
- sUSDS supply reached $5.52 billion at the end of Q2, up 149% year on year, and SKY rose to $0.0757 after the news.
Galaxy Digital has put $100 million of sUSDS, the yield-bearing savings token from Sky Protocol, into its corporate treasury, according to an announcement reported by Bitcoin.com News. The Nasdaq-listed digital-asset firm also approved sUSDS as eligible collateral across its institutional trading business, which serves more than 1,600 counterparties. Galaxy funded the position from its own balance sheet and acquired an undisclosed amount of SKY, the protocol's governance token.
The arrangement lets Galaxy clients post sUSDS against loans while continuing to earn the Sky Savings Rate on the full amount for the duration of the loan. That means institutions no longer have to choose between earning yield and using an asset as collateral. Galaxy's lending operation carries an average loan book of roughly $1.4 billion, which gives the integration meaningful scale.
Max Bareiss, Galaxy's head of lending, said adding sUSDS to the treasury and deepening financing through Sky gives clients more efficient access to onchain yield, backed by a savings rate the firm trusts with its own balance sheet. The company framed the move as bringing DeFi yield into a $1.4 billion loan book and expanding sUSDS as institutional infrastructure.
DeFi yield on balance sheet
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. Grove commits USDS capital through a dedicated vehicle that finances institutional loans originated by Galaxy and secured by digital assets.
Greg Feibus, global head of capital markets at the Sky Frontier Foundation, said the partnership shows how onchain savings can move into mainstream finance. He said Sky was built so the same savings rate can be available to anyone, from an individual saver to a Nasdaq-listed balance sheet, and described it as a blueprint for connecting traditional finance to onchain capital.
The timing strengthens Sky's pitch to corporate treasuries and asset managers. sUSDS supply reached $5.52 billion at the end of Q2, up 149% over the previous year. Sky also reported five consecutive profitable quarters, including $107.35 million in gross revenue and a $33.29 million net surplus in Q2 2026.
sUSDS as loan collateral
The announcement gave SKY an immediate market boost. The token jumped to $0.0757 after the news, posting double-digit gains before easing toward $0.0745. SKY remained 7.5% higher over the past 24 hours, with a seven-day gain of 16.9%, suggesting traders read the allocation as an endorsement of the protocol's institutional ambitions. For the wider market, the significance is that a DeFi savings asset is being used as treasury capital, loan collateral and part of an institutional financing stack.