Galaxy Digital has added $100 million of Sky Protocol’s yield-bearing stablecoin sUSDS to its corporate treasury and approved the asset as collateral across its institutional trading business.
The move also includes an undisclosed SKY purchase and discussions around expanding an existing $500 million financing facility, linking stablecoin treasury use with institutional lending.
Galaxy Stablecoin Move Puts sUSDS Into Treasury Operations
Galaxy funded the $100 million sUSDS purchase with its own balance sheet, according to reporting by The Block. The company also approved sUSDS as collateral for institutional loans, allowing clients to borrow against the asset while continuing to receive the Sky Savings Rate on their positions.
The firm’s institutional trading business has an average loan book of $1.4 billion and serves more than 1,600 counterparties.
The firm also acquired an undisclosed amount of SKY tokens as part of its relationship with Sky. The companies are discussing an expansion of their existing $500 million warehouse facility, although no new facility size has been announced. That creates a broader connection between the firm’s treasury strategy, institutional lending operations and Sky’s onchain financial infrastructure.
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sUSDS Supply Reached $5.52B as Institutional Demand Grew
Sky’s sUSDS supply reached $5.52 billion at the end of the second quarter, representing a 149% increase from a year earlier. The growth provides important context for Galaxy’s $100 million allocation, which represents a meaningful institutional position but only a portion of the overall sUSDS supply.
Galaxy’s move also illustrates how yield-bearing stablecoins can serve purposes beyond payments and trading. By accepting sUSDS as collateral while allowing holders to retain its savings-rate accrual, the structure combines financing utility with an income-generating asset. The firm has previously participated in Sky-related lending arrangements, including financing through Grove and Spark.
Galaxy Stablecoin Strategy Connects Yield With Institutional Loans
The collateral feature is particularly relevant to institutional borrowers because it allows capital to remain productive while being used to secure financing.
Instead of converting sUSDS into cash before borrowing, clients can pledge the asset while continuing to receive its applicable savings rate. The model resembles traditional secured financing, where income-producing assets can simultaneously serve as collateral.
Sky’s structure also gives institutions access to onchain information about protocol collateral and financial activity. Sky’s ecosystem uses USDS and sUSDS alongside lending and capital-allocation products, expanding the role of stablecoins from settlement assets toward financial infrastructure.
The firm has separately launched its Galaxy Onchain Financing Rate, which uses several onchain lending protocols to determine a blended borrowing rate.
SKY Rises 16% as Galaxy Deepens Sky Integration
SKY’s market data shows increased activity around the token in recent days. CoinGecko data shows SKY closed at $0.07095 on September 20, compared with $0.05933 on September 17, representing an increase of roughly 19.6% across the period. By September 22, its market capitalization stood near $1.65 billion, with about $16.9 million in 24-hour trading volume.
The price movement coincides with the firm’s treasury and lending announcement, but it does not establish that the deal caused the increase.
More importantly, the development gives SKY additional institutional context because the firm is acquiring the governance token while integrating sUSDS into its lending operations. The next focus will be whether the proposed expansion of the $500 million warehouse facility translates into greater institutional financing through Sky’s ecosystem.
Also Read: Bank Leumi Partners With Galaxy Digital for Crypto Trading
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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