Galaxy Digital has added $100 million of Sky Protocol's sUSDS to its corporate treasury, deepening a partnership that now extends across treasury management, institutional lending and onchain financing.

Sky is the decentralized finance protocol formed out of MakerDAO's rebranding, and sUSDS is its savings token for the USDS stablecoin. The allocation was made from Galaxy's own balance sheet, tying the firm's treasury returns directly to revenue generated across the Sky ecosystem. Alongside the treasury purchase, the firm approved sUSDS as eligible collateral across its institutional trading business, which serves more than 1,600 counterparties and maintains an average loan book of approximately $1.4 billion.

As part of the expanded relationship, Galaxy also acquired an undisclosed amount of SKY, the ecosystem's governance token. Neither company disclosed the size or purchase price of the position.

sUSDS Enters Institutional Lending

Under the new collateral framework, Galaxy's clients gain an additional route to financing without forfeiting the yield attached to their sUSDS holdings. Borrowers can pledge sUSDS against loans while continuing to earn the Sky Savings Rate on their entire position for the duration of the loan, giving the asset a dual function as both a yield-bearing treasury holding and loan collateral. For treasury teams, that structure lowers the opportunity cost of posting collateral, since pledged positions keep accruing yield rather than sitting idle.

sUSDS provides exposure to Sky's savings rate, which is funded by the protocol's surplus revenue. According to figures cited by the two companies, sUSDS supply reached $5.52 billion at the end of the second quarter.

A Widening Financing Relationship

The latest agreement builds on a series of existing financing arrangements linking Galaxy to the Sky ecosystem. Grove, a Prime Agent within the Sky ecosystem, provides Galaxy with a $500 million warehouse facility supporting institutional loans secured by digital assets. The two firms are also discussing an expansion of that facility, though no potential new size has been disclosed, leaving the final scale of that credit line an open item to track.

Galaxy has additionally borrowed through Spark, another Sky capital allocator, to support its Galaxy Onchain Financing Rate, known as GOFR. The companies have now structured a new tri-party borrowing arrangement that connects Sky financing more directly to GOFR.

Taken together, the developments show how Galaxy and Sky are broadening their relationship beyond a conventional lending facility, combining corporate treasury exposure, collateralized lending and onchain financing infrastructure. With the size of the SKY token purchase and the terms of any Grove facility expansion still undisclosed, further announcements from either company will clarify the partnership's full scope.

Source: CryptoMeter io