Galaxy Buys SKY Tokens and Adds 100M sUSDS to Treasury

By Michael Adeleke

Galaxy Digital has grown its corporate treasury by adding $100 million worth of sUSDS, a yield-bearing stablecoin issued by Sky Protocol. The company also announced that it approved sUSDS as collateral for its institutional trading business and bought an undisclosed amount of SKY tokens.

The SKY market has reacted positively to the news, with the price of the token increasing by roughly 10% over the last 24 hours despite the Bitcoin price declining by 2% in the same time period. 

 

What this means for Galaxy’s clients

sUSDS is different from the usual stablecoin because it earns interest automatically. It accrues what’s called the Sky Savings Rate. This is a variable interest rate that grows the holder’s balance over time. 

Galaxy now permits clients to use sUSDS as collateral when taking out loans through its platform because of this feature. This is while still earning yield on their position for as long as the loan lasts.

.@galaxyhq institutional platform serves more than 1,600 trading counterparties, while its institutional trading business carries a $1.4B average loan book.

sUSDS can now be used as collateral across that business. What makes this significant goes beyond access.

— Sky (@SkyEcosystem) September 23, 2026

It is also worth mentioning that the company works with over 1,600 trading counterparties and carries an average loan book of $1.4 billion.

The firm paid for the sUSDS using money from its balance sheet. Max Bareiss, Galaxy’s Head of Lending, said the company held close to $2.5 billion in cash and stablecoins as of June 30. Galaxy said it is now one of the first publicly traded companies to hold sUSDS.

On the SKY token purchase, Greg Feibus, Global Head of Capital Markets at the Sky Frontier Foundation, confirmed that Galaxy had bought in.

“Holding SKY is emblematic of the breadth of the integration across treasury and lending,” he said, adding that Sky’s potential to generate steady protocol revenue even in tough market conditions is a core part of why it decided to invest.

Institutions are adopting sUSDS

Feibus explained that using a yield-bearing token like sUSDS as loan collateral is very popular in traditional finance. 

“In traditional markets, pledging Treasuries or other assets as collateral for financing is extremely common.” he said.

He added that using a yield-generating dollar asset like sUSDS as collateral is simply “a natural extension of that workflow.”

He also pointed out that transparency is a big reason why institutions are comfortable using Sky. 

 “Institutions can also understand how Sky generates protocol surplus revenue and independently verify the protocol’s collateral and balance sheet on-chain, which is a must from an underwriting perspective,” he said.

Interest from institutions in Sky’s ecosystem picked up notably after S&P Global gave Sky Protocol a “B-” credit rating back in August of last year. Sky reported that the total supply of sUSDS hit $5.52 billion by the end of the second quarter, which is a 149% increase compared to the year before.

A growing partnership between Galaxy and Sky

This new deal is not the first time Galaxy and Sky have worked together. The companies have made other financial arrangements in the past.

For instance, Galaxy’s partnership with Grove, a Prime Agent in the Sky ecosystem, supports institutional loans backed by digital assets. In January, Grove contributed $50 million to Galaxy’s $75 million tokenized collateralized loan obligation.

Galaxy has also borrowed through Spark, another capital allocator tied to Sky, to support a product, Galaxy Onchain Financing Rate, which it launched in July.

Lastly, the companies are currently in talks about expanding their $500 million warehouse facility as they continue to expand operations.

Source:: Galaxy Buys SKY Tokens and Adds 100M sUSDS to Treasury