Galaxy Digital (GLXY) expanded its relationship with Sky Protocol through a new lending and capital markets partnership that includes a $100 million sUSDS allocation to its corporate treasury and broader use of the token across its institutional business. Galaxy shares traded at $26.76, down 1.49%, after an early rebound lost momentum during Wednesday trading.

sUSDS Added to Galaxy’s Treasury and Collateral Operations

Galaxy added $100 million of sUSDS to its corporate treasury under the expanded arrangement with Sky Protocol. sUSDS is Sky’s yield-bearing savings token, accruing the Sky Savings Rate on USDS held in the protocol’s savings mechanism. The company also approved the savings token as eligible collateral across its institutional trading operations, which support more than 1,600 trading counterparties and maintain an average loan book of $1.4 billion.

Clients can now use sUSDS as collateral when securing loans through Galaxy’s institutional platform while continuing to earn the Sky Savings Rate on their entire sUSDS position. The structure allows deposited collateral to generate yield while supporting borrowing activity within Galaxy’s lending network. That setup differs from conventional secured lending, where posted collateral generally sits idle for the life of a loan, a distinction that has drawn institutional attention to yield-bearing onchain collateral.

The move makes Galaxy one of the early public companies to hold sUSDS directly on its balance sheet. Corporate digital-asset treasuries have so far centered on Bitcoin holdings, keeping direct allocations to yield-bearing stablecoin tokens uncommon among listed companies. Galaxy has already used Sky-linked infrastructure for institutional credit and digital-asset lending services, meaning the treasury allocation expands an existing relationship rather than creating an entirely new financing channel.

Sky Extends Onchain Credit Links Across Galaxy’s Lending Business

The companies were previously connected through Grove, a Prime Agent operating within the broader Sky ecosystem. Grove provides Galaxy with a $500 million warehouse facility for institutional loans secured by digital assets. The facility supplies USDS capital through a dedicated lending structure that supports Galaxy’s loan-origination activities.

Galaxy has also borrowed through Spark, another Prime Agent connected to the Sky ecosystem. Those funds support Galaxy’s GOFR product and provide an additional source of financing for institutional clients. The arrangement enables Galaxy to diversify its funding while linking parts of its lending operation to onchain marketsn
The new partnership extends these links across treasury management, collateral, lending, and Galaxy’s broader Global Markets business. Sky gains access to Galaxy’s institutional network, while Galaxy receives another source of onchain liquidity for its lending products and corporate treasury management.

Tokenized Assets Expand Institutional Connectivity

Sky Protocol entered the third quarter with $5.41 billion supplied through independent allocators and institutional tokenized funds. Its ecosystem also holds positions in BlackRock’s BUIDL and Janus Henderson’s JTRSY tokenized products. These allocations connect Sky’s stablecoin liquidity with traditional asset managers and tokenized financial instruments.

The sUSDS supply reached $5.52 billion at the end of the second quarter, representing a 149% increase from the previous year. Sky also recorded $107.35 million in gross revenue and a $33.29 million net surplus during the quarter.

The broader tokenized-asset market has expanded as financial institutions adopt blockchain-based collateral and settlement products. Onchain real-world assets excluding stablecoins surpassed $33 billion during July 2026, roughly four times the level recorded in early 2025.

Galaxy’s partnership places sUSDS within corporate treasury management and institutional lending simultaneously. It also allows Galaxy clients to use yield-producing assets while supporting loans and trading activity. The arrangement further connects Galaxy’s operations with onchain capital as tokenized financial markets expand. Galaxy’s regular disclosures as a listed company and Sky’s quarterly protocol reporting, which already tracks supply, revenue, and surplus, provide reference points for gauging how the arrangement develops.

The partnership was reported by Blockonomi.