Galaxy Adds $100M sUSDS to Treasury, Tests Institutional Adoption

Galaxy Digital has taken a significant step in its relationship with Sky Protocol by adding $100 million of sUSDS, the yield-bearing savings token issued by Sky, to its corporate treasury. This move makes sUSDS eligible as collateral for institutional clients, allowing them to borrow against their position while still earning a variable savings rate on the full amount.

The arrangement allows borrowers to keep accruing the Sky Savings Rate, which is set by governance and funded from aggregate protocol surplus, even after pledging sUSDS as collateral. This means that clients can retain their savings position while accessing credit through Galaxy's institutional trading business.

The decision makes sUSDS a viable option for institutional clients looking to borrow against their crypto holdings, but the actual client uptake and loan volume are still unknown. The companies' relationship already includes credit financing through Grove, a Sky ecosystem agent that supplies capital for institutional loans originated by Galaxy.