Galaxy Digital (NASDAQ: GLXY) has placed $100 million of Sky Protocol’s yield-bearing savings token, sUSDS, onto its corporate balance sheet and opened the asset as eligible collateral across its institutional trading and lending platform.
The allocation was funded from Galaxy’s own cash and stablecoin reserves, which totaled nearly $2.5 billion as of June 30.
The firm described itself as one of the first publicly listed companies to hold sUSDS as a treasury asset.
sUSDS is Sky’s native savings instrument.
Holders earn the Sky Savings Rate, a variable yield set by protocol governance and funded by surplus revenue from the Sky Agent Network.
Under the new arrangement, Galaxy clients can pledge sUSDS against loans and continue receiving that rate on the full position for the life of the loan.
The approval applies to Galaxy’s institutional business, which serves more than 1,600 counterparties and carries an average loan book of about $1.4 billion.
The treasury purchase and collateral listing sit inside a broader lending relationship that has been building for some time.
Grove, a Prime Agent in the Sky ecosystem, already provides Galaxy with a $500 million warehouse facility that uses USDS to finance Galaxy-originated loans secured by digital assets.
Galaxy has also borrowed through Spark, another Prime Agent, to support its Galaxy Onchain Financing Rate product, which blends rates from several on-chain venues into a single client rate.
The companies are discussing an expansion of that warehouse line, though no new size has been announced.
Galaxy also acquired an undisclosed amount of SKY, the protocol’s governance token.
Greg Feibus, global head of capital markets at Sky Frontier Foundation, said the token holding reflects how far the integration now runs across treasury management and credit.
Max Bareiss, Galaxy’s head of lending, has said the firm has used Sky infrastructure for on-chain financing for an extended period and that putting sUSDS on its own books gives clients a savings rate the company is willing to hold itself.
Sky framed the deal as a signal that the same savings rate can serve both individual users and a Nasdaq-listed balance sheet.
The protocol closed the second quarter with $5.52 billion of sUSDS outstanding, up 149 percent year over year, and reported five consecutive profitable quarters, including $107.35 million in gross revenue and a $33.29 million net surplus in Q2.
Sky also noted that it holds anchor positions in tokenized funds such as BlackRock’s BUIDL and Janus Henderson’s JTRSY, and that on-chain real-world assets excluding stablecoins had grown past $33 billion by July.
The move does not make sUSDS a large share of Galaxy’s liquid reserves, nor does the $100 million position represent more than a sliver of total sUSDS supply.
Its importance is institutional precedent: a public digital asset firm is treating a DeFi savings token as both a treasury instrument and prime collateral, while keeping yield attached to pledged holdings. That combination is what the two firms presented as a practical bridge between on-chain capital and traditional lending workflows.