Galaxy Digital (Nasdaq: GLXY) added $100 million of Sky Protocol’s sUSDS stablecoin to its corporate treasury, the companies announced on 23rd September 2026. Galaxy also approved the yield-bearing token as collateral across its institutional trading business.
Key Takeaways
- Galaxy Digital paid for the sUSDS position from its own balance sheet and says it is one of the first public companies to hold the token.
- Galaxy clients can now post sUSDS against loans and keep earning the Sky Savings Rate on the full position until the loan ends.
- Galaxy’s institutional platform serves more than 1,600 trading counterparties and carries an average loan book of $1.4 billion.
- Galaxy also bought an undisclosed amount of SKY tokens as part of a wider treasury and lending tie-up with Sky.
- The two firms set up a new borrowing arrangement and are discussing a larger version of an existing credit line.
What Happened?
Galaxy funded the purchase from its own balance sheet, Head of Lending Max Bareiss said. The company held nearly $2.5 billion in cash and stablecoins as of June 30.
sUSDS accrues the Sky Savings Rate, a variable interest rate. A borrower can pledge the token to Galaxy and still collect that yield.
Greg Feibus, Global Head of Capital Markets at the Sky Frontier Foundation, confirmed the SKY purchase. He said Galaxy views Sky’s ability to generate meaningful protocol revenue across market environments as central to its investment thesis.
Galaxy Adds $100 Million in sUSDS to Corporate Treasury and Acquires SKY
— Wu Blockchain (@WuBlockchain) September 23, 2026
Galaxy Digital has purchased $100 million of Sky Protocol’s yield-bearing stablecoin sUSDS using its own balance sheet and approved it as collateral across its institutional trading business, which has a… pic.twitter.com/ieAGQQoC4w
Why Institutions Are Warming to sUSDS?
Feibus compared the new collateral option to a standard practice in traditional finance, where pledging Treasurys or other assets to secure financing is extremely common. As traditional firms move onchain, he called a yield-bearing dollar asset a natural extension of that workflow. He also said the ability to audit Sky directly matters to credit teams.
Feibus said:
Institutional interest has picked up since S&P Global assigned Sky Protocol a “B-” credit rating in August 2025, according to Feibus. Sky said sUSDS supply reached $5.52 billion at the end of the second quarter, up 149% from a year earlier.
Galaxy and Sky Already Share a Funding Pipeline
Galaxy’s ties to the Sky ecosystem now run through four channels:
- Treasury: the new sUSDS position plus the undisclosed SKY holding.
- Warehouse lending: Grove, a Prime Agent in the Sky ecosystem, provides a $500 million warehouse facility for institutional loans secured by digital assets.
- Securitization: Grove anchored Galaxy’s $75 million tokenized collateralized loan obligation (CLO) on Avalanche with a $50 million allocation in January.
- Onchain borrowing: Galaxy has borrowed through Spark, a Sky capital allocator, to support its Galaxy Onchain Financing Rate (GOFR).
GOFR launched in July and blends rates from onchain lending protocols including Aave, Morpho, Spark and Kamino into a single borrowing rate. Aave and Morpho also sit behind the Fireblocks institutional stablecoin yield product.
Galaxy has now structured a new tri-party borrowing arrangement with Sky, Feibus said. The setup diversifies Galaxy’s funding sources and ties that financing more directly to GOFR. The two firms are also discussing an expansion of the warehouse facility, though no potential new size was disclosed.
The Bottom Line
The deal places Galaxy on every side of the Sky relationship. It holds sUSDS as a treasury asset, accepts it as loan collateral and borrows from capital that flows through Sky’s ecosystem. For lending clients, a yield-bearing dollar token can now secure a loan without giving up its return, though that return floats with the Sky Savings Rate.
That integration also concentrates Galaxy’s exposure to one protocol, and S&P’s B- rating still places Sky in speculative territory. Two details remain undisclosed: the size of Galaxy’s SKY purchase and the size of any expanded warehouse facility. Both will show how far Galaxy plans to scale its ties to a DeFi protocol.
