Galaxy Digital Invests $100 Million in Surprise Altcoin, Sky Ecosystem Integration Deepens

US-based cryptocurrency company Galaxy Digital has taken a surprise investment in sUSDS, a yield-generating stablecoin from the decentralized finance (DeFi) platform Sky. The company added $100 million worth of sUSDS to its treasury, which also included approximately $2.5 billion in cash and stablecoins as of June 30.

Galaxy's Head of Credit, Max Bareiss, stated that the company financed its sUSDS purchase from its own balance sheet. This move is significant because Galaxy is one of the first publicly traded companies to hold sUSDS.

The investment also included an undisclosed amount of $SKY, the native token of the Sky ecosystem. Greg Feibus, Head of Global Capital Markets at Sky Frontier Foundation, noted that holding $SKY tokens demonstrates the breadth of integration between Galaxy and Sky in treasury and lending spaces.

Under this new arrangement, Galaxy's institutional clients will be able to use their sUSDS assets as collateral for loans, earning a variable return called the Sky Savings Rate during the loan duration. This offering is part of Galaxy's enterprise transaction platform, which serves more than 1,600 transaction counterparties and has an average loan portfolio size of approximately $1.4 billion.