Galaxy adds $100M Sky token to treasury

On Sept. 23, Galaxy Digital, Sky Protocol's yield-bearing savings token, and CryptoSlate reported that the firm approved sUSDS as collateral for institutional clients while adding $100 million to its corporate treasury.

The announcement confirmed the treasury position but omitted data on client borrowing or specific transactions. This approval permits the token's use within Galaxy's institutional trading operations, although client adoption levels remain unknown.

Under the terms, borrowers posting sUSDS collateral continue to earn the Sky Savings Rate on the full amount while loans are active. Sky governance determines this rate, funded by protocol surplus, meaning accruals are variable.

The partnership already features credit financing via Grove, a Sky ecosystem agent. In July, Grove disclosed a $500 million warehouse facility that provides capital for institutional loans originated by Galaxy. A Sept. 17 update from the Sky Frontier Foundation reported Sky agents maintained roughly $304 million with Galaxy as of Sept. 1, attributed to the Grove facility.

No figures for client loans or collateral were released. Specific loan details or outstanding balances would indicate if institutions utilize the token beyond Galaxy’s internal holdings.