Galaxy Digital Adds $100 Million in Sky's sUSDS to Treasury and Expands Lending Ties
Galaxy puts $100 million of sUSDS on its balance sheet
Galaxy Digital, a digital asset and AI infrastructure company, has added $100 million of Sky Protocol's sUSDS — a yield-generating stablecoin — to its corporate treasury and approved it as collateral for institutional loans. The company also acquired an undisclosed amount of SKY, the native token of Sky Protocol.
Galaxy funded the sUSDS purchase from its own balance sheet. Head of Lending Max Bareiss told The Block that the firm held nearly $2.5 billion in cash and stablecoins as of June 30. Galaxy said it is among the first public companies to hold sUSDS.
What the announcement includes
- Galaxy added $100 million of sUSDS to its treasury, paid for from company funds.
- sUSDS is now accepted as collateral across Galaxy's institutional trading business, which serves more than 1,600 trading counterparties and carries an average loan book of $1.4 billion.
- Galaxy bought an undisclosed amount of SKY tokens. Sky Frontier Foundation Global Head of Capital Markets Greg Feibus said the SKY position reflects the breadth of the integration.
- Clients can post sUSDS as loan collateral while continuing to earn the Sky Savings Rate on the full position for the duration of the loan.
- Galaxy and Sky already have several lending arrangements in place, including a $500 million warehouse facility from Grove and borrowing through Spark for Galaxy's GOFR product.
How the lending relationship works
Galaxy and Sky Protocol already have existing connections through the Sky ecosystem. Grove, a Prime Agent within Sky, provides Galaxy with a $500 million warehouse facility for institutional loans secured by digital assets. Grove also anchored Galaxy's $75 million tokenized CLO on Avalanche with a $50 million allocation in January.
Galaxy has borrowed through Spark, a Sky capital allocator, to support its Galaxy Onchain Financing Rate (GOFR). Launched in July, GOFR combines rates from onchain lending protocols such as Aave, Morpho, Spark, and Kamino to offer a blended borrowing rate.
How Sky is growing
Sky reported that sUSDS supply reached $5.52 billion at the end of the second quarter, up 149% from a year earlier. S&P Global assigned Sky Protocol a 'B-' credit rating, and Feibus said institutional interest in the ecosystem has picked up since that rating.
Feibus explained that in traditional markets, pledging assets as collateral for financing is common. Using a yield-bearing dollar asset like sUSDS as collateral, he said, is a natural extension of that workflow as financial firms move onchain. He added that institutions can independently verify Sky's collateral and balance sheet onchain, which is important from an underwriting perspective.
What is confirmed
Galaxy added $100 million of sUSDS to its treasury, approved sUSDS as collateral for institutional loans, and acquired an undisclosed amount of SKY tokens. The sUSDS purchase was funded from Galaxy's own balance sheet. Galaxy's institutional platform serves more than 1,600 counterparties with an average loan book of $1.4 billion.
What remains unclear
The exact amount of SKY tokens Galaxy purchased was not disclosed. The source does not provide further details on pricing or specific timing of the SKY acquisition.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.