Sky rallies as Galaxy Digital allocates $100 million to sUSDS

Galaxy Digital (GLXY) has allocated $100 million of Sky Protocol’s yield-bearing sUSDS to its corporate treasury, approving the token as collateral across its institutional trading business as the two firms deepen their onchain financing relationship.

Galaxy expands sUSDS utility across lending operations

Galaxy funded the sUSDS purchase from its own balance sheet, making it one of the first public companies to hold the savings token, according to a Wednesday statement. The firm also acquired an undisclosed amount of SKY, Sky Protocol’s governance token, as part of the broader relationship.

Under the new arrangement, Galaxy’s institutional clients can post sUSDS as collateral against loans while continuing to earn the Sky Savings Rate on their full holdings for the duration of the loan.

“Galaxy has relied on Sky Protocol’s infrastructure to support our onchain financing for some time,” said Max Bareiss, Galaxy’s head of lending.

The development gives sUSDS a dual role within Galaxy’s institutional trading operations, allowing clients to access financing without giving up the yield generated by their collateral.

“Adding sUSDS to our treasury and as loan collateral, and deepening our GOFR financing through Sky, gives our clients more efficient access to onchain yield, backed by a savings rate we trust with our own balance sheet,” Bareiss added.

Partnership builds on existing onchain credit facilities

The latest agreement builds on an existing financing relationship between Galaxy and Sky’s ecosystem. Grove, a Prime Agent within the Sky ecosystem, provides Galaxy with a $500 million warehouse lending facility.

Under the arrangement, Grove commits USDS capital through a dedicated lending vehicle to finance Galaxy’s origination of institutional loans secured by digital assets.

Galaxy has also borrowed through Spark, another Prime Agent in the Sky ecosystem, to support its Galaxy One Fund of Receivables (GOFR) product. The arrangement expands the financing available to Galaxy’s institutional clients while diversifying the firm’s funding sources.

The new collaboration extends Sky’s savings infrastructure from corporate treasury management into institutional lending and Galaxy’s broader capital markets operations.

“Sky was built so the same savings rate can be made available to anyone, from an individual saver to a Nasdaq-listed balance sheet,” said Greg Feibus, global head of capital markets at Sky Frontier Foundation.

The partnership comes as Sky reports growth in its savings-token ecosystem. sUSDS supply reached $5.52 billion at the end of the second quarter of 2026, representing a 149% increase from a year earlier, according to the announcement.

Sky also reported $107.35 million in gross revenue and a $33.29 million net surplus for the quarter.

Sky jumped to $0.0757, recording double-digit gains following the announcement, before easing toward $0.0720 at the time of writing. The token is up 5% over the past 24 hours, stretching its 7-day gains to 27%.