MV Capital | Galaxy Digital Allocates $100 Million in Sky Protocol sUSDS to Treasury and Approves It as Loan Collateral

The firm also acquired an undisclosed amount of SKY tokens while expanding its lending partnership with the protocol

Galaxy Digital has added $100 million of Sky Protocol’s sUSDS yield-bearing stablecoin to its corporate treasury and approved the asset as eligible collateral across its institutional trading business. The move, announced on September 23, 2026, also included the purchase of an undisclosed quantity of SKY tokens and marks a further deepening of the two firms’ lending and capital markets relationship.

The sUSDS acquisition was funded entirely from Galaxy’s own balance sheet. Max Bareiss, Galaxy’s Head of Lending, noted that the company held nearly $2.5 billion in cash and stablecoins as of June 30. Galaxy stated it is among the first publicly traded companies to hold sUSDS on its balance sheet.

Collateral Access and Yield Continuity for Clients

Under the new arrangement, institutional clients of Galaxy can post sUSDS as collateral for loans through the firm’s trading platform. Importantly, the full position continues to accrue the Sky Savings Rate—a variable interest rate—throughout the duration of any loan. This removes the traditional trade-off between posting collateral and earning yield on the underlying asset.

Galaxy’s institutional platform serves more than 1,600 trading counterparties and maintains an average loan book of $1.4 billion. The addition of sUSDS expands the range of assets available for financing within that book.

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

SKY Token Purchase and Broader Integration

In parallel with the treasury allocation, Galaxy acquired an undisclosed amount of SKY, the native token of the Sky ecosystem. Greg Feibus, Global Head of Capital Markets at the Sky Frontier Foundation, described the purchase as evidence of integration that extends beyond lending into treasury management.

“Holding SKY is emblematic of the breadth of the integration across treasury and lending. 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.”Greg Feibus, Global Head of Capital Markets, Sky Frontier Foundation

Feibus compared the use of yield-bearing dollar assets such as sUSDS as collateral to long-standing practices in traditional finance, where Treasuries and similar instruments are routinely pledged for financing. He also cited on-chain transparency—allowing institutions to verify collateral and balance-sheet data independently—as a factor supporting underwriting confidence.

Institutional Interest and Prior Collaboration

Institutional engagement with Sky has increased since S&P Global assigned the protocol a B- credit rating. By the end of the second quarter, the total supply of sUSDS had reached $5.52 billion, a 149 percent increase from the same period a year earlier.

The latest steps build on an existing relationship. Grove, a Prime Agent within the Sky ecosystem, already provides Galaxy with a $500 million warehouse facility supporting institutional loans collateralized by digital assets. In January, Grove allocated $50 million to Galaxy’s $75 million tokenized collateralized loan obligation. Galaxy has also drawn on Spark, another Sky capital allocator, to support its Galaxy Onchain Financing Rate product, which launched in July and aggregates rates from multiple on-chain lending protocols.

The two firms have established a new tri-party borrowing arrangement intended to diversify Galaxy’s funding sources and link them more closely to the on-chain financing rate. Discussions are also under way regarding a potential expansion of the existing $500 million warehouse facility.

Market reaction to the announcements included a roughly 10 percent rise in the SKY token price over a 24-hour period, even as broader market conditions showed declines in other major assets.