Galaxy Digital adds $100M sUSDS position, buys SKY tokens
DeFi & Yields ·
The digital-asset firm has folded Sky Protocol's yield-bearing stablecoin into its own treasury and approved it for use across its lending desk.
Galaxy funded the $100 million sUSDS allocation from its own balance sheet, according to wublockchain.xyz, and has now cleared the token for use as collateral throughout its institutional trading operation. That business carries an average loan book of $1.4 billion and counts more than 1,600 counterparties, giving sUSDS a route into a sizable existing lending network rather than a standalone treasury holding.
The arrangement lets clients keep collecting the Sky Savings Rate on their entire sUSDS balance even while that same balance is pledged as loan collateral, according to theblock.co. That dual function — yield generation plus collateral utility — is central to why the move is being read as an institutional adoption signal rather than a simple treasury diversification.
Beyond the stablecoin purchase, Galaxy also acquired SKY tokens, though the size of that position has not been disclosed. The firm and Sky are separately discussing widening their current warehouse facility, which stands at $500 million, pointing toward a deeper financing relationship beyond this initial allocation.
Coverage of the move has appeared across multiple outlets, with three distinct sources tracking the development, underscoring that the transaction is being treated as a notable step in institutional DeFi engagement rather than a routine balance-sheet update.
What remains unclear is the exact size of Galaxy's SKY token purchase and whether the discussed expansion of the $500 million warehouse facility will be finalized, along with any timeline for a larger agreement between the two firms.