Galaxy Digital and Sky Protocol announced on September 23, 2026 that Galaxy has added $100 million of Sky’s sUSDS to its corporate treasury and approved the yield-generating stablecoin as collateral across its institutional trading business, making Galaxy one of the first public companies to hold sUSDS on its balance sheet.
Galaxy funded the position from its own balance sheet and also acquired an undisclosed amount of SKY tokens, according to the companies’ joint announcement. Clients can now post sUSDS against loans through Galaxy while continuing to earn the Sky Savings Rate on the full position for the duration of the loan. Galaxy’s institutional platform serves more than 1,600 trading counterparties and carries an average loan book of $1.4 billion.
Max Bareiss, Head of Lending at Galaxy, said Galaxy has relied on Sky Protocol’s infrastructure for its onchain financing for some time, and that adding sUSDS to its treasury and as loan collateral gives clients more efficient access to onchain yield backed by a savings rate the firm trusts.
Galaxy Digital posted the news on X shortly after the joint release went live, highlighting the treasury allocation and collateral approval as the two headline pieces of the expanded Sky relationship:
What Galaxy’s sUSDS Position Involves
The partnership gives sUSDS a role beyond being a DeFi savings product by introducing it into institutional treasury and lending workflows. sUSDS is Sky Protocol’s savings-focused stablecoin, providing yield exposure on USDS holdings through the Sky Savings Rate, functioning differently from the collateral models covered in a roundup of 9 best crypto lending platforms in 2026.
| Galaxy–Sky Partnership | Details |
| Treasury allocation | $100 million of sUSDS |
| Additional purchase | Undisclosed amount of SKY tokens |
| Institutional loan book | $1.4 billion average |
| Trading counterparties | 1,600+ |
Table 1. Key details of Galaxy Digital’s sUSDS partnership with Sky Protocol.
Institutional interest in Sky’s ecosystem has picked up since S&P Global assigned Sky Protocol a “B-” credit rating in August 2025, giving institutions like Galaxy a more familiar reference point for evaluating the protocol, since pledging Treasurys as collateral is extremely common in traditional markets.
How Large Sky Protocol Has Become
Sky Protocol, which builds on the MakerDAO ecosystem, describes itself as the largest onchain capital allocator, with $5.41 billion in onchain stablecoin liquidity entering Q3 2026. sUSDS supply reached $5.52 billion at Q2 close, up 149% year-over-year, with the protocol posting $107.35 million in gross revenue and a $33.29 million net surplus that quarter.
Sky supplies capital through independent allocators and into institutional tokenized funds, holding anchor positions in BlackRock’s BUIDL and Janus Henderson’s JTRSY, part of the same institutional momentum covered in how BlackRock’s Bitcoin ETF is changing institutional demand.
That scale gives Galaxy a strategic entry point into the largest pool of onchain capital, rather than a standalone allocation into an untested protocol.
This Builds on an Existing Relationship, Not a New One
The latest development adds a treasury component and a new collateral use case to an existing relationship rather than an entirely new connection. Galaxy’s ties to Sky now run through several channels: Grove, a Prime Agent in the Sky ecosystem, provides a $500 million warehouse lending facility, while Spark supports Galaxy’s GOFR financing.
Grove also anchored Galaxy’s $75 million tokenized collateralized loan obligation on Avalanche, with a $50 million allocation made in January. The two firms have also structured a new tri-party borrowing arrangement and are discussing expanding the existing warehouse facility.
Why Institutional Collateral Recognition Matters Here
For an asset to function as institutional collateral, market participants typically need confidence around transparency, liquidity, valuation, risk management, and operational reliability.
By approving sUSDS as collateral, Galaxy is testing whether a decentralized finance asset can fit within institutional lending structures, though the approval applies specifically within Galaxy’s own framework and does not mean sUSDS becomes universally accepted collateral across financial markets.
What Comes Next for Galaxy and Sky
Galaxy and Sky will continue developing the partnership across lending and capital-market applications, including the discussed expansion of the existing warehouse facility. The companies have not disclosed additional treasury allocation targets or the size of Galaxy’s new SKY token position.
What this means for you: Galaxy Digital’s sUSDS allocation shows how DeFi assets are moving beyond individual crypto users and into institutional financial workflows. The key development is not only that Galaxy is holding a stablecoin-related asset, but that a yield-bearing DeFi asset is being tested as treasury capital and collateral within institutional lending operations.
This article is for informational purposes only and does not constitute financial or investment advice. Digital assets, DeFi protocols, stablecoins, and collateralized lending involve liquidity, smart-contract, regulatory, market, and operational risks.
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