Galaxy Digital has added $100 million of Sky Protocol’s sUSDS to its corporate treasury, strengthening a relationship that now spans treasury management, institutional lending and onchain financing.
The allocation came from Galaxy’s own balance sheet. The company also approved sUSDS as eligible collateral across its institutional trading business, which serves more than 1,600 counterparties and carries an average loan book of about $1.4 billion.
Galaxy also acquired an undisclosed amount of SKY tokens as part of the expanded relationship. The firms did not disclose the size or purchase price of Galaxy’s SKY position.
sUSDS Moves Into Institutional Lending
The new collateral framework gives Galaxy clients another way to access financing without giving up the yield associated with their sUSDS holdings.
Clients can post sUSDS against loans while continuing to earn the Sky Savings Rate on their full position for the duration of the loan. That structure gives the asset a dual role as both a yield-bearing treasury asset and loan collateral.
Sky’s sUSDS represents exposure to its savings rate, which is funded by the protocol’s surplus revenue. Supply reached $5.52 billion at the end of the second quarter, according to figures cited by the companies.
Broader Financing Relationship
The latest agreement builds on several existing financing arrangements between Galaxy and the Sky ecosystem.
Grove, a Sky ecosystem Prime Agent, provides Galaxy with a $500 million warehouse facility supporting institutional loans secured by digital assets. The firms are also discussing an expansion of that facility, although they have not disclosed a potential new size.
Galaxy has separately borrowed through Spark, another Sky capital allocator, to support its Galaxy Onchain Financing Rate, or GOFR. The companies have now structured a new tri-party borrowing arrangement that connects Sky financing more directly to GOFR.
The developments show how Galaxy and Sky are expanding their relationship beyond a conventional lending facility. Their latest moves combine corporate treasury exposure, collateralized lending and onchain financing infrastructure.
