Galaxy adds $100M Sky sUSDS to Treasury, Buys SKY Tokens

Galaxy Digital has put $100 million of Sky Protocol's sUSDS on its corporate balance sheet and bought an undisclosed amount of SKY, the protocol's governance token. Galaxy said it is one of the first public companies to hold sUSDS.

For a holder, the change shows up in two concrete ways. The $100 million sitting on Galaxy's books will now earn the Sky Savings Rate, the variable interest rate sUSDS accrues, so the protocol's distribution now reaches a public company treasury rather than only retail and crypto-native wallets. Galaxy has also approved sUSDS as collateral across its institutional trading desk, and clients posting it against loans will continue earning the Sky Savings Rate on the full position for the duration of the loan. That combination, yield plus lendable collateral, is the structural piece institutions have been waiting on.

What Galaxy is doing with the position

Galaxy funded the sUSDS purchase from its own balance sheet, Head of Lending Max Bareiss told. As of June 30 the firm held nearly $2.5 billion in cash and stablecoins, which puts the $100 million at roughly 4% of that bucket. Galaxy said its institutional platform serves more than 1,600 trading counterparties and runs an average loan book of $1.4 billion.

Adam Feibus, a Galaxy spokesperson, framed the underwriting case this way: "Institutions can also understand how Sky generates protocol surplus revenue and independently verify the protocol's collateral and balance sheet onchain, which is a must from an underwriting perspective." Feibus separately tied the pickup in institutional interest to S&P Global assigning Sky Protocol a 'B-' credit rating last year.

Why the Sky ecosystem is now entwined with Galaxy

sUSDS supply reached $5.52 billion at the end of the second quarter, up 149% from a year earlier, per Sky. The treasury line is not the only thread between the two firms. Grove, a Prime Agent in the Sky ecosystem, provides Galaxy with a $500 million warehouse facility for institutional loans secured by digital assets. Grove also anchored Galaxy's $75 million tokenized collateralized loan obligation on Avalanche with a $50 million allocation in January. Galaxy has separately borrowed through Spark, a Sky capital allocator, to support the Galaxy Onchain Financing Rate (GOFR), launched in July, which draws on Aave, Morpho, Spark, Kamino and other onchain lending venues to offer a blended borrowing rate.

Galaxy did not disclose the dollar value of its SKY purchase, the price at which it bought, the Sky Savings Rate at the time of the announcement or Feibus's full title.