Galaxy adds $100 million of Sky token as institutional adoption is tested

Galaxy Digital added $100 million of sUSDS, Sky Protocol's yield-bearing savings token, to its corporate treasury and approved it as collateral for institutional clients. The companies announced the decision on Sept. 23. They did not disclose any client lending secured by sUSDS or a completed sUSDS-backed loan. The approval makes sUSDS eligible across Galaxy's institutional trading business. Actual client uptake remains undisclosed. Clients who pledge sUSDS as loan collateral continue accruing the Sky Savings Rate on their full position while the loan runs. Sky says governance sets the rate and funds it from aggregate protocol surplus. The savings rate can change, so future accrual is not fixed. The loan terms and available rate would determine the financial result for a borrower. Galaxy and Sky did not provide those details for any completed sUSDS-backed borrowing. In July, Grove announced a $500 million warehouse facility for institutional loans that Galaxy originates. Grove supplies USDS capital, while Galaxy originates and services the loans. The facility accepts Bitcoin and Ethereum collateral, including staked forms of Ethereum. A Sky Frontier Foundation update published Sept. 17 said Sky agents held about $304 million with Galaxy as of Sept. 1. That figure reflected Sky-side exposure before the new sUSDS announcement.