Galaxy Digital Adds $100M of Sky Protocol’s sUSDS to Treasury and Approves It as Institutional Collateral

Galaxy Digital announced that it has added $100 million of sUSDS, the yield‑bearing savings token from Sky Protocol, to its corporate treasury. The token is now approved for use as collateral in the firm’s institutional lending business.

Treasury Allocation and Collateral Approval

The $100 million allocation is described as a completed treasury position. While the token is now eligible for client loans, Galaxy has not disclosed the volume of loans secured by sUSDS or any specific loan terms.

How sUSDS Works for Borrowers

sUSDS continues to earn the Sky Savings Rate while it is pledged as collateral. The rate is set by Sky governance and funded from the protocol’s surplus. Holders retain the same number of sUSDS tokens as the redeemable USDS amount grows, meaning borrowers can access credit without forfeiting the underlying savings position. The savings rate may change over time, so future accrual is not fixed.

Existing Relationship with Sky and Grove Facility

Galaxy’s partnership with Sky already includes credit financing through Grove, a Sky ecosystem agent. In July, Grove announced a $500 million warehouse facility that provides USDS capital for institutional loans originated by Galaxy. Collateral for that facility is limited to Bitcoin, Ethereum and staked Ethereum. A Sky Frontier Foundation update on September 17 indicated that Sky agents held about $304 million with Galaxy as of September 1, reflecting exposure prior to the new treasury allocation.

Implications for Institutional Adoption

The collateral approval could allow sUSDS to be used in Galaxy’s broader client lending portfolio. However, without disclosed loan amounts or client uptake, the extent of institutional adoption remains untested.