Galaxy has integrated $100 million of sUSDS into its corporate reserves, accepted sUSDS as collateral throughout its institutional trading operations, and purchased an unspecified quantity of SKY.
Galaxy Digital (GLXY) has incorporated $100 million of Sky Protocol’s sUSDS into its corporate treasury and authorized the yield-generating stablecoin as collateral across its institutional trading division, the organizations announced on Tuesday.
Max Bareiss, Head of Lending, informed The Block that Galaxy financed the sUSDS acquisition utilizing its own balance sheet, noting that the firm possessed nearly $2.5 billion in liquid cash and stablecoins as of June 30. Galaxy stated it stands as one of the initial public corporations to maintain holdings in sUSDS.
According to Greg Feibus, Global Head of Capital Markets at the Sky Frontier Foundation, Galaxy additionally acquired an unspecified amount of SKY (SKY) tokens as part of the partnership. “Holding SKY is emblematic of the breadth of the integration across treasury and lending,” Feibus communicated to The Block. “Galaxy views Sky’s ability to generate meaningful protocol revenue across market environments, alongside the growing institutional use of its broader ecosystem, as central to the investment thesis.”
Clients can presently utilize sUSDS as collateral for loans via Galaxy while maintaining the accumulation of the Sky Savings Rate—the variable interest tied to sUSDS—on the entire holding throughout the loan period. Galaxy reported that its institutional platform caters to over 1,600 trading partners, and its institutional trading arm maintains an average loan portfolio valued at $1.4 billion.
Feibus conveyed to The Block that institutional engagement with Sky’s ecosystem has escalated since S&P Global assigned Sky Protocol a ‘B-‘ credit rating in the preceding year.
“Within traditional markets, pledging Treasurys or alternative assets as collateral for financing is exceptionally widespread,” Feibus stated. “As conventional financial institutions transition onchain, leveraging a yield-producing dollar asset such as sUSDS as collateral serves as a natural progression for that workflow.”
“Institutions can additionally comprehend how Sky produces protocol surplus revenue as well as independently verify the protocol’s collateral and balance sheet onchain, which represents an essential requirement from an underwriting perspective,” Feibus added.
Sky announced that the supply of sUSDS attained $5.52 billion concluding the second quarter, marking a 149% increase compared to the previous year.
Total stablecoin supply. Image: The Block.
Onchain financing
Both entities already maintain several credit agreements established. Grove, acting as a Prime Agent within the Sky network, supplies Galaxy with a $500 million warehouse line for institutional loans backed by digital assets. Previously, Grove supported Galaxy’s $75 million tokenized CLO deployed on Avalanche through a $50 million commitment in January.
Furthermore, Galaxy has secured financing through Spark, a capital allocator for Sky, to back its Galaxy Onchain Financing Rate (GOFR). Introduced in July, GOFR leverages onchain lending protocols including Aave, Morpho, Spark, Kamino, and others to deliver an aggregated borrowing rate.
Originally published at https://www.theblock.co/news/business/2026-09-23-galaxy-adds-100-million-in-skys-susds-to-treasury-buys-sky-token-as-firms-deepen-lending-ties-416137.
