Galaxy adds $100 million in sUSDS to treasury, buys SKY tokens

Galaxy added $100 million of Sky Protocol's sUSDS to its corporate treasury. Galaxy approved the yield-generating stablecoin as collateral across its institutional trading business. Galaxy acquired an undisclosed amount of SKY tokens as part of the relationship. The companies announced the actions Tuesday. Max Bareiss said Galaxy funded the purchase from its own balance sheet. Bareiss said Galaxy held nearly $2.5 billion in cash and stablecoins as of June 30. Galaxy said it is one of the first public companies to hold sUSDS. Clients can post sUSDS against loans through Galaxy while continuing to earn the variable Sky Savings Rate on the full position for the loan's duration. Galaxy's institutional platform serves more than 1,600 trading counterparties. Its institutional trading business carries an average loan book of $1.4 billion. Greg Feibus said institutional interest in Sky's ecosystem has increased since S&P Global assigned Sky Protocol a B- credit rating last year. Feibus said institutions can verify Sky's collateral and balance sheet onchain. Sky said sUSDS supply reached $5.52 billion at the end of the second quarter. Supply increased 149% from a year earlier. Grove provides Galaxy with a $500 million warehouse facility for institutional loans secured by digital assets. Grove previously anchored Galaxy's $75 million tokenized CLO on Avalanche with a $50 million allocation in January. Galaxy borrowed through Spark to support its Galaxy Onchain Financing Rate. GOFR launched in July. GOFR uses Aave, Morpho, Spark, Kamino, and other onchain lending protocols to offer a blended borrowing rate. Galaxy structured a new tri-party borrowing arrangement with Sky, Feibus said. The arrangement diversifies Galaxy's funding sources and links the financing more directly to GOFR. The firms are discussing an expansion of the existing $500 million warehouse facility. They did not disclose a potential new size.